lgf transport business case report
TRANSCRIPT
LGF Transport Business Case Report Thanet Parkway Station
001 Revision 04
March 2019
Document Control Sheet
Project Name: Thanet Parkway Station
Report Title: LGF Transport Business Case Report
Report Number: 001
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Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:001 Rev. 04 - i - Issued: March 2019
Contents
1 Introduction ............................................................................................... 5
1.1 Overview .................................................................................................. 5
1.2 Location of the Scheme .............................................................................. 5
1.3 Background to the Business Case ................................................................ 6
1.4 Scheme Development History ..................................................................... 7
1.5 Purpose of this Document .......................................................................... 9
1.6 Structure of the Document ......................................................................... 9
2 Proposed Scheme ..................................................................................... 11
2.1 Proposed Station Facility .......................................................................... 11
2.2 Proposed Timetable ................................................................................. 13
2.3 Passenger Capacity .................................................................................. 15
2.4 Service Costs .......................................................................................... 17
2.5 Impact on Other Passenger Services ......................................................... 18
3 Strategic Case .......................................................................................... 20
3.1 Introduction ............................................................................................ 20
3.2 National Transport Priorities ..................................................................... 20
3.3 Regional Transport Priorities ..................................................................... 24
3.4 Local Transport Priorities .......................................................................... 26
3.5 Current Problem ...................................................................................... 32
3.6 Impact of Not Changing ........................................................................... 36
3.7 Internal Drivers for Change ...................................................................... 39
3.8 External Drivers for Change ...................................................................... 39
3.9 Objectives ............................................................................................... 40
3.10 Scope ..................................................................................................... 42
3.11 Constraints ............................................................................................. 42
3.12 Inter-dependencies .................................................................................. 43
3.13 Stakeholders ........................................................................................... 44
3.14 Options................................................................................................... 45
4 Economic Case ......................................................................................... 49
4.1 Introduction ............................................................................................ 49
4.2 Options Appraised ................................................................................... 50
4.3 Value for Money Method .......................................................................... 50
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4.4 Scope for Proportionality in the Assessment ............................................... 53
4.5 Assumptions ........................................................................................... 55
4.6 Initial NPV .............................................................................................. 59
4.7 Sensitivity ............................................................................................... 60
4.8 Qualitative Impacts .................................................................................. 61
4.9 Appraisal Summary Table ......................................................................... 64
4.10 Value for Money Statement ...................................................................... 66
5 Financial Case .......................................................................................... 68
5.1 Introduction ............................................................................................ 68
5.2 Base Costs .............................................................................................. 69
5.3 Inflation .................................................................................................. 70
5.4 Risk Budget ............................................................................................ 70
5.5 Optimism Bias ......................................................................................... 70
5.6 Final Scheme Costs .................................................................................. 70
5.7 Funding Arrangements ............................................................................. 71
5.8 Whole Life Costs ...................................................................................... 74
5.9 Accounting Implications ........................................................................... 75
6 Commercial Case ...................................................................................... 76
6.1 Introduction ............................................................................................ 76
6.2 Outcome Based Specification .................................................................... 76
6.3 Procurement Options ............................................................................... 77
6.4 Procurement Strategy .............................................................................. 77
6.5 Payment Mechanisms .............................................................................. 79
6.6 Pricing Framework and Charging Mechanisms ............................................ 80
6.7 Potential for Risk Transfer ........................................................................ 80
6.8 Contract Length ...................................................................................... 80
6.9 Contract Management .............................................................................. 80
6.10 Securing Rail Services .............................................................................. 80
7 Management Case .................................................................................... 82
7.1 Introduction ............................................................................................ 82
7.2 Evidence of Similar Project Delivery .......................................................... 82
7.3 Project Programme .................................................................................. 84
7.4 Project Dependencies .............................................................................. 85
7.5 Governance, Organisation Structure, Roles and Assurance .......................... 86
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7.6 Assurance and Approvals Plan .................................................................. 90
7.7 Availability and Suitability of Resources ..................................................... 90
7.8 Communications and Stakeholder Management Plan .................................. 91
7.9 Risk Management .................................................................................... 97
7.10 Scheme Risks .......................................................................................... 98
7.11 Monitoring and Evaluation ...................................................................... 101
7.12 Benefits Realisation Plan ........................................................................ 101
Appendix A Scheme Proposal Plans A
Appendix B Thanet Parkway Station Full Business Case Economics TN01, PBA
2018 B
Appendix C Economic Appraisal Calculation Spreadsheet C
Appendix D Letters of Support D
Appendix E (E1) Thanet Parkway Options Analysis and (E2) Thanet Parkway
Sites Appraisal E
Appendix F Scheme Cost Estimate F
Appendix G Quantified Risk Assessment G
Appendix H Project Programme H
Appendix I Project Governance Plan I
Appendix J Stakeholder Management Plan J
Appendix K Thanet District Transport Strategy Infrastructure Plan (draft with
indicative development site boundaries) K
Appendix L Passenger Demand Modelling Report L
Figures
Figure 1-1: Scheme Location ............................................................................................... 5
Figure 2-1: Illustrative View of Proposed Station ................................................................. 11
Figure 2-2: Proposed Station Outline Design ....................................................................... 12
Figure 4-1: Value for Money Process .................................................................................. 51
Figure 7-1: EKA2 Scheme Layout ....................................................................................... 83
Figure 7-2: KCC Governance Structure ............................................................................... 89
Tables
Table 1.1: Scheme Development and Contributors ................................................................ 7
Table 2.1: Proposed Hourly Off-peak Train Times ............................................................... 14
Table 2.2: Proposed Hourly Peak Train Times ..................................................................... 14
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Table 2.3: Southeastern PIXC at London Termini ................................................................ 15
Table 2.4: Anticipated Passenger Trips in 2021 (Medium Growth Scenario) .......................... 16
Table 2.5: Anticipated Passenger Trips in 2026 (Medium Growth Scenario) .......................... 16
Table 2.6: Anticipated Passenger Trips in 2031 (Medium Growth Scenario) ........................... 17
Table 3.1: RAG Policy Assessment of the Scheme against Objectives ................................... 30
Table 3.2: Objectives and Measurable Outcomes ............................................................... 41
Table 4.1: Initial Scheme Impact (Medium Growth) ........................................................... 59
Table 4.2: Sensitivity Tests .............................................................................................. 61
Table 4.3: Summary of Qualitative Impacts ....................................................................... 63
Table 4.4: Appraisal Summary Table .................................................................................. 65
Table 4.5: Value for Money Summary ............................................................................... 66
Table 5.1: Components of Investment Cost (2018/Q1) ....................................................... 69
Table 5.2: Summary of Final Scheme Costs (2016/Q2 prices) .............................................. 71
Table 5.4: Expenditure Forecast ........................................................................................ 73
Table 5.5: Estimated Annual Station Operating Costs .......................................................... 74
Table 5.6: Estimated Annual Car Park Operating Costs ........................................................ 75
Table 7.1: Key Project Programme.................................................................................... 84
Table 7.2: Resource Plan per GRIP Stage ........................................................................... 86
Table 7.3: Stakeholder Categories ..................................................................................... 91
Table 7.4: Scheme Risks ................................................................................................... 99
Table 7.5: Outcome Measurement ................................................................................... 102
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1 Introduction
1.1 Overview
1.1.1 Kent County Council (KCC) has developed a Transport Business Case (TBC) for the South
East Local Enterprise Partnership (SELEP) Thanet Parkway Station scheme. The scheme
has been allocated a portion of the Government’s Local Growth Fund (LGF) by the SELEP
in the form of the Kent and Medway Growth Deal.
1.1.2 This TBC has been based upon previous work undertaken by Peter Brett Associates and
other consultants, on behalf of KCC, and collated by consultants Amey. It has
subsequently been updated by Peter Brett Associates and KCC following progress with
the project between 2017 and 2018.
1.2 Location of the Scheme
1.2.1 The proposed new Thanet Parkway Station will be located approximately 2 miles east of
Ramsgate on the Ashford
International to Ramsgate line,
south of the Manston Airport site
and just to the west of the village
of Cliffsend.
Figure 1-1: Scheme Location
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1.3 Background to the Business Case
1.3.1 The local growth white paper, published in October 2010, set out the roles that Local
Enterprise Partnerships can play depending on their local priorities. The Chancellor of
the Exchequer announced the first 11 zones in the 2011 Budget. The government has
now created 48 enterprise zones.
1.3.2 A new approach to funding local major transport schemes, that are to be constructed in
England (outside London) during the 2015-2021 period, was established in response to
Lord Heseltine’s report ‘No Stone Unturned’. At its heart is a powerful case for
decentralising economic powers from central government to local areas and leaders, as
those best placed to understand and address the opportunities and obstacles to growth
in their own communities.
1.3.3 On 18 March 2013 the government published its ‘Response to the Heseltine Review’,
accepting in full or in part 81 of Lord Heseltine’s 89 recommendations. Each of the 39
local enterprise partnerships was invited to submit a Strategic Economic Plan (SEP) by
31 March 2014, outlining their local priorities to maximise growth.
1.3.4 In July 2014, the government negotiated a Growth Deal with all 39 Local Enterprise
Partnerships (LEPs), which awarded a significant proportion of the £12 billion Local
Growth Fund to LEPs.
1.3.5 The South East Local Enterprise Partnership (SELEP) brings together key leaders from
business, local government, further and higher education in order to create the most
enterprising economy in England through exploring opportunities for enterprise while
addressing barriers to growth. Covering Essex, Southend, Thurrock, Kent, Medway and
East Sussex, it is the largest strategic enterprise partnership outside of London.
1.3.6 The SELEP has secured almost £590.8 million in funding from HM Government to boost
economic growth in Kent, East Sussex, Essex, Medway, Southend and Thurrock between
2015 and 2021. The Deal will support the delivery of up to 78,000 jobs and 29,000, new
homes as wells as facilitating the development of new skills in the SELEP area. The Local
Growth Fund will also unlock a further £960 million of private investment over the 6 year
period. For Kent, the funding allocation is £168 million which was been allocated,
primarily for transport schemes, to the Kent & Medway Economic Partnership – the local
arm of the SELEP.
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1.3.7 All LEP’s have signed up to develop a single assurance framework as part of the growth
deal to ensure all have robust value for money processes in place. The purpose of this
LEP assurance framework is to support the developing confidence in delegating funding
from central budgets and programmes via a single pot mechanism. As part of their
Growth Deal, LEPs will be expected to use this national framework to inform how they
work locally, which must be set out in their own local assurance framework.
1.3.8 It is important that all LEPs have robust arrangements in place to ensure value for money
and effective delivery, through strong project development, project and options
appraisal, prioritisation, and business case development.
1.3.9 The methodology used to assess value for money and the degree of detail to which
business cases are developed in support of particular projects or programmes should be
proportionate to the funding allocated and in line with established Government guidance
including the HM Treasury Green Book. Typically the Government expect business cases
to address, in a proportionate manner, the 5 cases set out in supplementary guidance
to the Green Book.
1.4 Scheme Development History
1.4.1 In the development of the Thanet Parkway scheme, KCC has employed consultants at
different stages to progress the feasibility and economic appraisal contained within this
business case. The previous pathway of this work is contained in Table 1-1:
Table 1.1: Scheme Development and Contributors
Scheme Development Contributors Date Reference
Proposed Station - Feasibility Steer Davies Gleave 2011 110121 Annex 1 - Thanet Parkway
Station Technical Note v1 0 -A
Outline Business Case PBA March 2014 Thanet Parkway Business Case
150127 v11.0
Sensitivity Tests on
economic and commercial
viability
PBA June 2015 28470 Thanet parkway Station -
Sensitivity Tests Technical Note v4 0
Ground Investigation AECOM Nov 2015
Regeneration and Wider
Economics
Wessex Economics 2016 TPW Station Regeneration and
Wider Economic Benefits Final
Report Jan 2016
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Scheme Development Contributors Date Reference
Revised Business Case –
Economic Appraisal
PBA April 2016 Thanet Parkway Station - Revised
Business Case - Economic Case v2 0
TPW Station Regeneration and
Wider Economic Benefits Final
Report Appendices 160202
TPW Station Regeneration and
Wider Economic Benefits Technical
Papers 160203
GRIP3 Multidisciplinary
Approval in Principle
(Outline design to support
funding bids)
AECOM May 2016 Approval in Principal - P01
Validation of passenger
demand and revenue
forecast
SLC Rail
JMP Consultants
2016 Referred to in NSF2 application
(2016.11.25)
Scheme Cost Estimate Gleeds Nov 2016
Passenger Demand
Modelling
PBA May 2017 Full Business Case Passenger
Demand Modelling Report
Revised Economic
Assessment
PBA May 2017 Thanet Parkway Business Case -
Medium Growth - 11052017
Full Business Case
Economics
PBA May 2017 36538 Thanet Parkway Station - Full
Business Case Economics TN01 v2
(25 05 17)
Highways cost estimate Allen Daddswell April 2018 Cost Plan Nr. 4 Thanet Parkway
Passenger Demand
Modelling
PBA July 2018 Full Business Case Passenger
Demand Modelling Report
Full Business Case
Economics
PBA July 2018 36538 Thanet Parkway Station –
Full Business Case Economics TN01
v3 (31 07 18)
Full Business Case
Economics
PBA January
2019
36538 Thanet Parkway Station –
Full Business Case Economics TN01
January 2019 v2
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1.5 Purpose of this Document
1.5.1 The purpose of this document is to provide evidence-based information to secure support
from the Local Growth Fund for £10.0m through the South East Local Enterprise
Partnership to progress the Thanet Parkway Station scheme. It has been updated in
September/October 2018 to take account of changes to the draft Thanet Local Plan and
also to support the request for an additional £4m of funding through LGF 3b. Further
revisions have been made in January and March 2019 following feedback received by
Steer at Gate 1 and 2 review.
1.5.2 Guidance for the preparation of Business Cases for Transport Schemes has been
published by the Department for Transport (DfT). This is based on H.M. Treasury’s advice
on evidence-based decision making as set out in the Green Book and uses the best
practice five case model approach. It also brings in other strands where relevant, such
as a summary of predicted scheme outcomes and scheme operational case.
1.5.3 This approach assesses whether schemes:
• are supported by a robust case for change that fits with wider public policy
objectives – the strategic case;
• demonstrate value for money – the economic case;
• are commercially viable – the commercial case;
• are financially affordable – the financial case; and
• are achievable – the management case.
1.5.4 The evidence gathered as part of the business case preparation process has been
prepared using the tools and guidance provided by the DfT, notably WebTAG. This
approach ensures that the evidence produced is robust and consistent.
1.6 Structure of the Document
1.6.1 This report is structured in accordance with the Department for Transport’s guidance on
Transport Business Cases, which was updated in January 2013. Following this
Introduction, the remainder of the document is structured as follows:
• Chapter 2 provides a description of the scheme design;
• Chapter 3 states the Strategic Case;
• Chapter 4 presents the Economic Case including the Value for Money Statement
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• Chapter 5 outlines the Financial Case;
• Chapter 6 details the Commercial Case;
• Chapter 7 provides the Management Case; and
• Chapter 8 presents an operational assessment to confirm that the planned scheme
will be fit-for-purpose.
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2 Proposed Scheme
2.1 Proposed Station Facility
Figure 2-1: Illustrative View of Proposed Station
2.1.1 The proposed station will provide two platforms of 252 metres in length and 2.6
metres in width to cater for 12-car, 20.2 metre rolling stock. To ensure a minimum
clearance of 2.5 metres between the platform edge and any obstruction, the platform
will be widened where waiting shelters, lifts and steps are located. Passive provision of
driver only operation viewing facilities will be provided.
2.1.2 Each platform will be fitted with lighting columns that host CCTV cameras and Long Line
Public Address speakers; two customer information displays and one passenger help
point; and shelters to provide weather protection. Lifts, stairs and footbridge will be
provided. However, during the current design stage consideration is being given to an
underpass option instead of a footbridge.
2.1.3 The station forecourt will include two ticket vending machines, a shelter and bus
passenger information. A set down area will be provided for buses, taxis and passenger
drop off, together with staff parking.
2.1.4 Parking will be provided for 311 cars (including 16 disabled bays), motorcycles and 40
cycle parking spaces, the latter located in the central pedestrian spine. Eight of the
spaces will provide electric vehicle charging points
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2.1.5 To encourage use of the station, a new direct access road will be provided, which also
improves the ‘visibility’ of the station. Pedestrian and cycle access is provided from
Cliffsend village via Clive Road. Ensuring sustainable access to the station is a key
objective.
2.1.6 While it is anticipated that the station will initially be unstaffed, passive provision has
been made in the design to accommodate a 12m x 6m standard modular building in
future. This would provide a covered waiting area, booking office, staff accommodation
and public toilets.
2.1.7 The proposed scheme is illustrated in Figure 2-2. Full scheme proposal plans are
contained within Appendix A.
Figure 2-2: Proposed Station Outline Design
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2.1.8 The current protocol is for the Train Operating Company to be the Station Facility Owner
(SFO). This is currently Southeastern but the re-franchising process commenced in
October 2016 and the franchise was expected to be awarded in November 2018, with
the start date of 1st April 2019. Although the re-franchising process has been delayed to
June 2019, it will nevertheless pre-date the opening of the new station. The Invitation
to Tender documents included specific reference to Thanet Parkway and requires the
new franchise holder to enter into a Station Lease and therefore take on responsibility
for the daily maintenance and operation of the station. Importantly, the franchise
specification also compels the new operator to stop at the station.
2.2 Proposed Timetable
2.2.1 It is proposed that the station is served by the existing hourly services on the following
routes:
1. London Charing Cross - Tonbridge - Ashford International - Canterbury West -
Ramsgate (Mainline);
2. London St Pancras International - Ebbsfleet International - Ashford International -
Canterbury West – Ramsgate - Margate (High Speed);
2.2.2 The new station will also benefit from the separate Journey Time Improvement (JTI)
scheme which is currently being delivered. The expected journey time savings from the
JTI scheme will save three minutes on the January 2015 timetable, which will offset the
additional time incurred by stopping at the new Thanet Parkway station. For High Speed
services to/from London St Pancras, it is therefore proposed that existing timings are
retained between London and Ashford.
2.2.3 For example, as the average stopping time at Thanet Parkway station is scheduled as 3
minutes, and as the JTI saving is expected to be 3 minutes, the overall journey time
to/from Ramsgate will not change compared with the current timetable.
2.2.4 For Mainline services to/from London Charing Cross, it is also proposed that the existing
timings are retained between London and Ashford. With the same benefit from the JTI
scheme, the journey time to/from Ramsgate would therefore remain the same as the
current timetable.
2.2.5 The standard off-peak and peak timetable patterns would be as shown in Table 2-1 and
2-2.
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Table 2.1: Proposed Hourly Off-peak Train Times
London St Pancras International - xx12
London Charing Cross xx10 -
Ashford International xx30 xx50
Canterbury West xx49 xx07
Thanet Parkway xx10 xx24
Ramsgate xx13 xx27
Margate - xx39
Margate - xx53
Ramsgate Xx19 xx05
Thanet Parkway xx22 xx08
Canterbury West xx44 xx27
Ashford International xx02 xx43
London Charing Cross xx22 -
London St Pancras International - xx21
Table 2.2: Proposed Hourly Peak Train Times
London St Pancras International - xx20
London Charing Cross xx09 -
Ashford International xx31 xx54
Canterbury West xx54 xx10
Thanet Parkway xx18 xx28
Ramsgate xx21 xx31
Margate - xx43
Margate - xx16
Ramsgate xx36 xx28
Thanet Parkway xx39 xx31
Canterbury West xx02 xx50
Ashford International xx23 xx06
London Charing Cross xx50 -
London St Pancras International - xx42
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2.2.6 Both services are augmented in the peaks to run approx. every 30 minutes and it is
proposed that these additional journeys also serve Thanet Parkway. Note: peak services
run at variable timings for the same stopping pattern so these are the best ‘average’
timings for each of the service patterns.
2.3 Passenger Capacity
2.3.1 There are no known capacity issues now or in the future that would have an impact on
the ability to accommodate the future passenger numbers predicted on services that
would call at Thanet Parkway Station.
2.3.2 Current passenger capacity was assessed on Monday to Friday departures from
Ramsgate to London and from London to Ramsgate. For departures to London, because
the rail services commence at Margate (High Speed) or Ramsgate (Mainline) (only two
or one station, respectively, before the proposed new station) there should always be
capacity on those services on arrival at Thanet Parkway as trains depart Margate or
Ramsgate with ample capacity for passengers to board at subsequent stations before
Ashford.
2.3.3 For departures from London the 2010 Route Utilisation Strategy shows that the Thanet
services AM peak hour ‘volume to seat ratio’ is less than 20%. A draft of The South East
Route: Kent Route Study was published for public consultation in March 2017, and the
final version was published in May 2018.
2.3.4 For Southeastern “passengers in excess of capacity” (PIXC) and standing passengers
departing London termini are shown in Table 2.3.
Table 2.3: Southeastern PIXC at London Termini
PIXC PIXC Passengers
Standing Passengers
Standing
St Pancras International
London Bridge St Pancras International
London Bridge
AM Arrivals 1% 2% 11% 23%
PM Departures 0% 1% 12% 12%
2.3.5 Therefore, passengers boarding at Thanet Parkway should always get a seat, but on
return they may have to stand for the initial part of their journey. It is anticipated that
80 additional daily trips (see demand model forecast below) in the PM peak will not have
a significant impact on the levels of overcrowding generally on Southeastern rail services
from London Charing Cross or St Pancras International.
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2.3.6 In the assessment of passenger trips, provided in the ‘Thanet Parkway Station – Full
Business Case Economics TN01 v1’ (PBA 2018) in Appendix B, it was identified that a
mix of both commuter and off peak trips would occur, with both London and Kent local
commuting trips being generated by 2021.
2.3.7 Passenger demand was calculated for low, high and medium growth scenarios for 2021,
2026 and 2031. The core scenario on which the economic assessment has been
developed is based on medium growth. A summary of anticipated passenger trips by
2021, 2026 and 2031, assuming a medium growth scenario, is shown in Table 2.4 to
Table 2.6.
Table 2.4: Anticipated Passenger Trips in 2021 (Medium Growth Scenario)
Before 09:30
After 09:30
24-Hour Total
Weekend 24-Hour
Annual Demand
To London – Abstracted
60 45 82 41 25215
To London – New 35 30 78 28 22786
To Other – Abstracted
94 32 108 30 30594
To Other - New 67 37 125 35 35440
Abstracted – Total 154 77 190 71 55809
New - Total 102 67 204 63 58479
TOTAL TRIPS 256 144 394 134 114288
Table 2.5: Anticipated Passenger Trips in 2026 (Medium Growth Scenario)
Before 09:30
After 09:30
24-Hour Total
Weekend 24- Hour
Annual Demand
To London – Abstracted
68 51 119 47 35230
To London – New 41 34 75 32 22463
To Other – Abstracted
106 36 142 34 39632
To Other - New 78 41 119 38 34249
Abstracted – Total 174 87 261 81 74862
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New - Total 119 75 194 70 56712
TOTAL TRIPS 293 162 455 151 131574
Table 2.6: Anticipated Passenger Trips in 2031 (Medium Growth Scenario)
Before 09:30
After 09:30
24-Hour Total
Weekend 24- Hour
Annual Demand
To London – Abstracted
73 54 127 50 37581
To London – New 45 38 83 35 24814
To Other – Abstracted
114 39 153 36 42633
To Other - New 86 44 130 40 37250
Abstracted – Total 187 93 280 86 80214
New - Total 131 82 213 75 62064
TOTAL TRIPS 318 175 493 161 142278
2.3.8 The medium growth Core Scenario indicates that the potential passenger numbers at
Thanet Parkway will be 114,000 in 2021 rising to 142,000 in 2031. This compares with
the annual passenger numbers of 568,000 at Ramsgate station in 2015/16 (source -
Office of Rail and Road).
2.4 Service Costs
2.4.1 The proposed timetable can be operated within existing schedules and the passenger
demand generated can be accommodated on existing services. There is therefore no
requirement for additional rolling stock.
2.4.2 The Train Operating Company will therefore not incur any significant additional train
operating cost as rolling stock, vehicle miles and train crew requirements will remain the
same as currently.
2.4.3 As evidenced by the ‘Thanet Parkway Business Case – Medium Growth Spreadsheet’
(PBA 2018), contained within Appendix C, fare revenues are in excess of operating
costs at opening year onwards, therefore no service subsidy is required.
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2.4.4 Additional passenger fare revenue is £577,900 in year 1, which increases annually to a
cumulative total of £28,148,000 by year 30. Total revenue (including car parking
revenue) over the 30-year period is £32,740,00. As the project costs are £27,650,000
over the life of the project there is a net positive cash flow and no operating subsidy
required.
2.4.5 The station can be accommodated within the existing signalling infrastructure.
2.4.6 It has been confirmed that some upgrade work is required to the adjacent level crossing
at Cliffsend. The exact specification of these works will need to be approved by Network
Rail within the current design stage and it is expected that the allowance of £3.25m
within the overall project cost will be sufficient. Subject to formal approval by Network
Rail, Sevenscore level crossing does not require an upgrade.
2.4.7 Other infrastructure works are confined to the station, lifts, stairs and platform
construction. As the railway is on an embankment at this location, platforms will be
around 4m above the surrounding ground level and piled foundations will be required to
support structures on the embankment slope. However, Network Rail are investigating
opportunities to use an alternative platform construction methodology.
2.5 Impact on Other Passenger Services
2.5.1 It is anticipated that there will be some impact on other rail services operated under the
South Eastern franchise in the vicinity of East Kent. There is likely to be abstraction of
passengers from the Ramsgate–Victoria/Cannon Street services which operate via
Medway, as the journey time from Thanet Parkway to St Pancras will be around an hour.
The affected stations on this route are likely to be Ramsgate, Dumpton Park, Broadstairs,
Margate and Westgate-on-Sea.
2.5.2 Ramsgate is likely to see abstraction of passengers accessing the railway station by car
given its limited parking capacity and the proximity of the new Parkway station. Any
abstraction from these stations will benefit potential passengers by reducing crowding
in the peaks.
2.5.3 The station most likely to be impacted on the Ramsgate-Canterbury West route is
Minster. This is a small local station which is only served by Mainline services, and there
is likely to be some abstraction from here to the new station given the overall reduction
in journey time available with High Speed services from Thanet Parkway. However, these
journeys will continue to be made on services operated by Southeastern.
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2.5.4 The station most likely to be impacted on the Ramsgate–Dover Priory route is Sandwich.
Although rail passengers would need to access the new station by car or bus from
Sandwich, the attraction of a much-reduced overall journey time and a considerably
shorter route to and from London would be likely to create some abstraction of rail
passengers here.
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3 Strategic Case
3.1 Introduction
3.1.1 This section sets out the ‘case for change’, by explaining the rationale for making
investment and presenting evidence on the strategic policy fit of the proposed scheme.
This section also sets out the scheme options under consideration.
3.1.2 The Strategic Case establishes the:
• Context for the business case, outlining the strategic aims and responsibilities of Kent
County Council (KCC);
• Transport-related problems that have been identified, using evidence to justify
intervention and examining the impact of not making the investment;
• Specific, Measurable, Achievable, Realistic and Time-bound (SMART) objectives that
solve the problem, identified through alignment with KCC’s strategic aims and
responsibilities;
• Measures for determining successful delivery of the objectives;
• Scheme scope, determining what the project will and will not deliver;
• Analysis of constraints and opportunities for investment;
• Breakdown of interdependencies on which the successful delivery of the scheme
depends;
• Details of main stakeholder(s); and
• Evaluation of the options considered.
3.2 National Transport Priorities
National Infrastructure Plan
3.2.1 The ‘National Infrastructure Plan 2014’ (NIP) sets out the Government’s vision and
approach to key economic infrastructure sectors, such as transport. The NIP sets out a
clear delivery plan for each of the key infrastructure sectors for the next 5 years and is
underpinned by the infrastructure pipeline which sets out the details for public and
private investment to 2020 and beyond. The plan provides clarity and transparency to
each sector for potential investors and the supply chain through delivery plans, key
actions and longer term goals.
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3.2.2 The Government presented its vision for the UK’s transport system in the NIP:
• Transport infrastructure can have a significant and positive effect on economic
growth and can be a key driver of jobs throughout the economy via enhancing
connectivity between businesses, goods and people and by encouraging a
sustainable, low-carbon economy that is vital for future success and development;
• Local transport systems are crucial to the overall transport system and must
facilitate the growth of suburban areas. The transport network must allow for
people to move freely and easily helping to support jobs and growth;
• The transport system must adapt to unexpected pressures allowing for the rapid
movement of goods and people, adding value to the economy.
DfT: Single Departmental Plan 2015 to 2020
3.2.3 The Department for Transport’s (DfT) Single Departmental Plan 2015 to 2020 sets the
government’s vision for transport, which is “to make journeys better: simpler, faster and
more reliable.” It states that the Plan will “support jobs, enable business growth, and
bring our country closer together.” This is supported by four objectives:
• Boosting economic growth and opportunity;
• Building a One Nation Britain;
• Improving journeys;
• Safe, secure and sustainable transport;
3.2.4 It is clear that Thanet Parkway will contribute towards the Government’s vision as it is
designed to support economic growth and bring Thanet closer to London. Improved
transport affords people more opportunity to access a range of jobs and increases the
ability for businesses to network and innovate.
3.2.5 The aim to build a One Nation Britain is also supported by Thanet Parkway as it will
create jobs outside of London, tapping into potential in some of Kent’s most deprived
areas. This scheme is also consistent with the third and fourth objectives of the Single
Departmental Plan 2015 - 20.
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National Networks National Policy Statement
3.2.6 The National Networks National Policy Statement (DfT, 2014) sets out the need for, and
Government’s policies to deliver, development of nationally significant infrastructure
projects (NSIPs) on the national road and rail networks in England. Although the paper
is aimed specifically at NSIPs, the proposed Thanet Parkway nevertheless accords with
the sentiment of the policy. For example, that there is a need for development on
national networks to support growth and regeneration, particularly in the most
disadvantaged areas.
3.2.7 Paragraph 2.6 states that “Improved and new transport links can facilitate economic
growth by bringing businesses closer to their workers, their markets and each other.
This can help rebalance the economy.” This aligns exactly with the aims of the Thanet
Parkway Station scheme.
Creating Growth, Cutting Carbon
3.2.8 The ‘Creating Growth, Cutting Carbon: Making Sustainable Local Transport Happen’ (DfT,
2011) White Paper sets a vision for a “transport system that is an engine for economic
growth, but one that is also greener, safer and improves quality of life in our
communities.” The strategy suggests that investment should be targeted at projects that
support growth and also encourage sustainable journeys.
3.2.9 In specific relation to rail infrastructure the policy states “We also need to reduce the
carbon impact of longer journeys – and here we see that rail, particularly high speed rail
between some of our largest cities, has a critical role to play. By prioritising spending on
key rail projects such as high speed rail and Crossrail, we will be providing commuters
and intercity travellers with attractive new options instead of the car.”
Door to Door
3.2.10 The ‘Door to Door: A strategy for improving sustainable transport integration’ (DfT,
2013) sets out the Government’s strategy towards achieving “a more integrated
transport system that facilitates and enhances door-to-door journeys by sustainable
means”. The strategy aims to get more journeys made by sustainable transport, including
rail, to reduce the carbon emissions from transport.
3.2.11 Four core areas of focus are identified, of which the Thanet Parkway Station proposal
closely aligns with two; specifically:
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• making connections between different steps in the journey, and different modes of
transport, easier; and
• providing better interchange facilities.
Transport Investment Strategy
3.2.12 The ‘Transport Investment Strategy’ (DfT, 2017) states how the Government will
prioritise transport funding to achieve certain objectives and sets out propositions that
will guide investment decisions, which includes the ‘rebalancing’ of the economy. The
Government will prioritise transport funding based on the achieving the following
objectives:
• Creating a more reliable, less congested, and better connected transport network
that works for the users who rely on it. This recognises that our intensively used
networks are ageing and face increasing demands, creating delays and
undermining reliability, and in places they do not provide the connections that
people and businesses need.
• Building a stronger, more balanced economy by enhancing productivity and
responding to local growth priorities. This recognises that our national productivity
lags behind other countries and prosperity has not been shared evenly between
different places, leaving some communities feeling left behind.
• Enhancing our global competitiveness by making Britain a more attractive place to
trade and invest. This recognises that our long term success in a globalised world
will depend on our ability to attract job-creating investment in our industrial
strengths and to trade as ‘frictionlessly’ as possible with partners old and new.
• Supporting the creation of new housing. This recognises that we face an immense
challenge to provide the houses that people need in the places they need them
and that transport infrastructure is one of the keys to unlocking development.
3.2.13 The Thanet Parkway Station proposal addresses many of these priority areas by
expanding the capacity of the network in Thanet and enhancing connectivity. By
promoting investment in this historically deprived area the economy is rebalanced away
from the dominance of West Kent.
3.2.14 In summary, it can clearly be seen that Thanet Parkway is aligned with and supports
national Government objectives for both transport policy and economic policy.
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National Infrastructure Assessment
3.2.15 The National Infrastructure Commission has published the National Infrastructure
Assessment (NIA). The interim report (published October 2017) identified three headline
challenges for the UK’s infrastructure: congestion, capacity and carbon. Thanet Parkway
will help reduce congestion on the highway network by facilitating the transfer of
journeys from road to rail, and it will also reduce congestion at existing stations by
providing additional capacity. By facilitating more rail journeys that would otherwise have
been made by road, the carbon impacts are reduced. The NIA looks to the longer term
forecasting that by 2050 the UK’s population and economy will have grown significantly,
placing substantial pressure on infrastructure. Building Thanet Parkway will help
accommodate those growing pressures in the South East. In addition, KCC continues to
work with Thanet District Council, East Kent authorities and all councils in Kent and
Medway to develop an infrastructure deal with Government to accelerate housing
delivery.
South Eastern Franchise Specification
3.2.16 The Department for Transport specification for the new South Eastern Franchise (due to
commence in April 2019) compels the new Franchisee to cooperate in delivering the new
station. It also requires them to enter into a station lease (meaning they are responsible
for operating and maintaining the station once opened) and to make provision for train
services to stop at the new station. This demonstrates a commitment from the
Department to the station and that there is Government buy-in for the principle.
3.3 Regional Transport Priorities
Growth and Infrastructure Framework
3.3.2 KCC has developed a joint framework for regeneration together with its neighbour
Medway Council called the Growth and Infrastructure Framework (GIF). The GIF
provides a framework not only for identifying and prioritising investment in
infrastructure, but also for testing the impact of innovation in the way in which public
services are provided.
3.3.3 The Kent and Medway GIF has been developed to demonstrate to Government,
infrastructure providers, the community and local authorities the challenges being faced
across Kent in funding the infrastructure required to support growth and enhance the
lives of existing residents.
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3.3.4 The picture presented from district Infrastructure Delivery Plans, County plans and those
of other providers is incomplete, however the GIF is intended to paint a strategic picture
of the price of and risks to growth. It aims to:
• Collate and summarise population/housing growth projections across Kent County
Council and Medway
• Set out a combined understanding of capacity within current infrastructure
provision and pipeline infrastructure projects being taken forward by KCC, Medway
Council and other infrastructure providers
• Highlight cumulative costs, funding streams and gaps in infrastructure funding.
Growth Deal and Strategic Economic Plan
3.3.5 Published in March 2014, the South East Local Enterprise Partnership (SELEP) Strategic
Economic Plan (SEP) outlines the vision and investment strategy to drive growth in the
economy to 2021. The SEP outlines the case for necessary investment to infrastructure
enterprise and employment that is required for the South East region’s economy to
continue its successful upward trajectory. Five core geographic areas are the focus of
economic growth including: Kent, East Sussex, Medway, Southend and Thurrock.
3.3.6 A component element of the Strategic Economic Plan for the area is the Kent and
Medway Growth Deal which sets out the plans for the public and private sectors to invest
over £800 million each year for the next six years to unlock potential through:
• Substantially increasing the delivery of housing and commercial developments;
• Delivering transport and broadband infrastructure to unlock growth;
• Backing business expansion through better access to finance and support; and
• Delivering the skills that the local economy needs.
3.3.7 The scheme is a regional priority for the South East Local Enterprise Partnership (SELEP)
and the Kent and Medway Economic Partnership (KMEP). Delivery of the station supports
their objectives by facilitating the delivery of new houses and employment space in
coastal areas, promoting investment in the former Manston airport site and reinforcing
the success of the successful Discovery Park Enterprise Zone. The project is specifically
referenced in their Growth Deal and Strategic Economic Plan (2014) as a priority to
support investment in the area and eliminate congestion on the roads. This in turn will
support the steady and sustained growth of the South East economy.
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3.3.8 Owing to the economic advantage of bringing East Kent closer to London, the new
station will support inward investment. Consequently, SELEP awarded the project a
provisional allocation of £10 million Local Growth Fund (LGF) money.
3.4 Local Transport Priorities
KCC’s Growth without Gridlock and Local Transport Plans
3.4.2 Kent’s third ‘Local Transport Plan (LTP3), 2011-2016’ set out KCC’s strategy and
implementation plans for local transport investment in the short term. The plan proposed
a new approach to prioritising investment in transport infrastructure in order to support
housing and employment in Kent’s growth areas and growth points, improve access to
jobs and services, make Kent a safer and healthier county (in particular in disadvantaged
areas), and cut carbon emissions. The plan prioritised its planned measures under five
themes:
• Growth without Gridlock;
• A Safer and Healthier County;
• Supporting Independence;
• Tackling a Changing Climate; and
• Enjoying Life in Kent.
3.4.3 Under each theme, the plan prioritised a range of transport initiatives and the principles
and policies underlying them, by area and by mode. Whilst some of the initiatives have
already been put in place or are in progress, a number provide the basis for the proposals
prioritised by the SELEP for capital investment support. The Thanet Parkway Station
scheme is identified as a top priority within LTP3.
3.4.4 ‘Growth without Gridlock’ (December 2010) was the transport delivery plan for Kent. The
plan identified the necessary transport infrastructure needed to accommodate the level
of economic growth and regeneration planned in Kent, the measures required to manage
the existing network and offer travel choice and better access to jobs. The overarching
goal of Growth without Gridlock was to enable growth and prosperity for Kent and the
UK as a whole. It set out the priorities for transport investment and how these will be
delivered in order to meet the current and future demands of the County in the context
of its crucial role in the UK and European economy.
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3.4.5 The Plan states that: “the private car will continue to remain the most popular and
dominant form of transport for our residents and these expectations and demands
increase pressure on our transport network, on our environment and on us as individuals.
This reliance is also the reason why our road network is congested and in response our
vision is to create a high quality integrated transport network which will create
opportunities for real transport choice as well as enabling economic growth and
regeneration.” Some of the key transport challenges identified by the Plan are:
• Tackling congestion hotspots;
• Transferring existing and new car trips onto public transport, walking and cycling,
especially for short journeys;
• Providing sufficient transport infrastructure to mitigate the impact of planned
development.
3.4.6 ‘Growth Without Gridlock’ is a concept that has been incorporated into the new Local
Transport Plan 4 to ensure all of Kent’s transport policy is contained within one
document.
3.4.7 In July 2017, Kent’s new plan, ‘Local Transport Plan 4: Delivering Growth without
Gridlock (2016 – 2031), was adopted by Kent County Council. The Thanet Parkway
Station scheme continues to be a top priority in KCC’s transport strategy, featuring as
both a Strategic Priority and Local Priority for the Thanet area. Its delivery will contribute
to two key outcomes of LTP4: economic growth and minimised congestion, and
affordable and accessible door-to-door journeys; thus helping to achieve the overall
ambition for transport in Kent:
• To deliver safe and effective transport, ensuring that all Kent’s communities and
businesses benefit, the environment is enhanced and economic growth is
supported.
Thanet District Council Corporate Objectives
3.4.8 Thanet District Council is committed to encouraging economic growth and development,
and helping to create an environment for inward investment, therefore supports the
proposed new Thanet Parkway station as it assists in meeting some of its key objectives.
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3.4.9 One of Thanet District Council’s 3 Corporate Objectives is “Promoting inward investment
and job creation”. The Corporate Plan states that; “Our vision is to accelerate growth
and achieve greater economic prosperity for our district. We will seek opportunities for
inward investment, high quality job creation and work with partners to ensure we have
the right skills, infrastructure and plans in place”.
3.4.10 To this end, the Council has:
• recently adopted a new Economic Growth Strategy, and identified land in its draft
Local Plan for future economic development and ensuring that there is sufficient
housing land to support economic growth;
• worked with partners to understand how we can work together to encourage and
facilitate new development in the area;
• taken specific advice on how the Council can help to create the right conditions for
inward investment and is developing an action plan.
3.4.11 Improving connectivity is a vital step in unlocking development potential and attracting
the necessary investment and job opportunities for local people. Thanet has Assisted
Area Status (identified by the UK Government and European Commission as experiencing
economic challenges and which needs additional support for economic development)
and this project is vital to enabling the regeneration and economic growth of the district.
The Parkway station is identified as a priority as it is a critical part of the infrastructure
required to support economic growth. It is therefore a key part of the Council’s emerging
Economic Growth Strategy and has land allocated in the draft Local Plan (emerging Local
Plan policy SP 39).
3.4.12 Along with the Journey Time Improvement (JTI) project on the Ashford to Ramsgate
mainline, a journey time of approximately 60 minutes from Thanet Parkway to London
Stratford International will be achieved. Being closer to London will help improve
investors’ perception that East Kent is easily accessible and an attractive place to invest
in and do business with (see 3.5.6). Reduced journey times to London will support the
Council’s (and partners) requirement to increase inward investment in the area. The
public sector owns employment land that was purchased to enable development and the
Parkway will assist its success in providing employment opportunities.
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3.4.13 This project will provide advantages to the tourism economy making Thanet more
accessible and encouraging more visitors to the area for both pleasure and business.
Increased visitor numbers are key to providing the growth in hotel accommodation which
will provide more employment opportunities and economic growth whilst providing
access to the conference market. Southeastern saw an increase of 30% in off-peak travel
between 2013 and 2015.
3.4.14 The Parkway station will also help support future demand for rail use as the planned
housing and employment growth takes place in the area. The station will give local
people more choice on where they can travel to/from and will also allow more people to
benefit from High Speed services to/from London. The provision of a dedicated new
station will, together with other planned improvements to the High Speed service
through to Ramsgate, make a significant contribution to improving connections with the
rest of the South East, and support the Council’s economic objectives.
Dover District Council Corporate Objectives
3.4.15 Dover District Council’s Corporate Plan indicates that the Council will support and
encourage the continuing success of Discovery Park Enterprise Zone, to attract new
businesses, from all sectors, to relocate in the district. The Enterprise Zone which is now
home to some 120 companies, employing circa 2,500 people, is widely regarded as one
of the most successful examples within the Government’s Enterprise Zone Programme.
3.4.16 Dover District Council state that substantial improvements have been made to the
accessibility of the East Kent coast in recent years, with the completion of the East Kent
Access Scheme, improvements to rail infrastructure including the limited extension of
the High Speed Services through to Deal and Sandwich. However, if the full economic
opportunities in the East Kent area are to be realised, it is essential that further
improvements are made to the rail infrastructure. These include improvements to
reduce journey times along with the construction of a new Thanet Parkway Station which
would further compliment and support the Enterprise Zone – to the benefit of many of
the businesses located there – while providing enhanced facilities for the wider localities.
Miscellaneous
3.4.17 The station is seen as an invaluable investment for the area by the MP for South Thanet,
Craig Mackinlay, and the MP for North Thanet, Sir Roger Gale, who have expressed their
support by letter. These and further letters of support from SELEP, KMEP, Thanet District
Council and Dover District Council are contained in Appendix D.
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Table 3.1: RAG Policy Assessment of the Scheme against Objectives
Strong strategic fit with policy
Neutral/minimal strategic fit with policy
Negative strategic fit with policy
Policy Objectives Strategic Fit
National Policy
National Infrastructure Plan (2014)
Transport infrastructure can have a significant and positive effect on economic growth and can be a key driver of jobs throughout the economy
Importance of Local transport systems in allowing free and easy access to support jobs and growth
The transport system must adapt to unexpected pressures allowing for the rapid movement of goods and people, adding value to the economy
DfT: Single Departmental Plan 2015 to 2020
Boosting economic growth and opportunity;
Building a One Nation Britain;
Improving journeys;
Safe, secure and sustainable transport;
National Networks National Policy Statement
Improved and new transport links can facilitate economic growth by bringing businesses closer to their workers, their markets and each other. This can help rebalance the economy
Creating Growth, Cutting Carbon (2011)
A transport system that is an engine for economic growth, but one that is also greener, safer and improves quality of life in our communities
Door to Door (2013) A more integrated transport system that facilitates and enhances door-to-door journeys by sustainable means
Transport Investment Strategy (2017)
Prioritisation of transport funding to achieve certain objectives, including creating a better connected transport network, rebalancing the economy, and supporting the creation of new housing.
National Infrastructure Assessment (2018)
Reducing congestion, increasing transport network capacity and cutting carbon.
South Eastern Franchise Specification (2017)
Requires the new franchisee to serve the station and enter into a Station Lease.
Regional Policy
Unlocking Kent’s Potential: KCC’s framework for regeneration (2009)
Building a new relationship with business
Unlocking talent to support the Kent economy
Embracing a growing and changing population
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Building homes and communities, not estates
Delivering growth without transport gridlock
South East LEP Growth Deal and Strategic Economic Plan (2014)
Generate 200,000 private sector jobs by 2021
Complete 100,000 new homes by 2021
Lever investment totalling £10 billion by 2021, to accelerate growth, jobs and homebuilding
Local Policy
Local Transport Plan for Kent 2011-16 (LTP3)1
Growth without Gridlock
A Safer and Healthier County
Supporting Independence
Tackling a Changing Climate
Enjoying life in Kent
Growth without gridlock: A transport delivery plan for Kent (2010)
Delivering growth and prosperity
Tackling congestion hotspots
Transferring existing and new car trips onto public transport, walking and cycling, especially for short journeys
Providing sufficient transport infrastructure to mitigate the impact of planned development
Local Transport Plan 4: Delivering Growth without Gridlock (2016 – 2031)
Economic growth and minimised congestion
Affordable and accessible door-to-door journeys
Safer travel
Enhanced environment
Better health and wellbeing
Thanet District Council Corporate Objectives
A clean and welcoming environment
Supporting neighbourhoods
Promoting inward investment and job creation
Dover District Council Corporate Objectives
Thriving Economy
Clean, Green and Safe Environment
Healthier People and Communities
Smarter Council
1 The Local Transport Plan for Kent 2011 – 16 (LTP3) was superseded by a new Local Transport Plan (LTP4).
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3.5 Current Problem
3.5.1 The East Kent area, specifically the districts of Canterbury, Dover, Shepway and Thanet,
suffers from increased deprivation when compared with West Kent and South East
England as a whole. Poor accessibility is one factor that has discouraged major employers
from locating in the area, which serves to undermine regeneration and has limited the
employment catchment for local residents.
3.5.2 Thanet district comprises the coastal towns of Margate, Ramsgate and Broadstairs.
According to the English Index of Multiple Deprivation 2015, Thanet continues to be the
most deprived local authority in Kent and is ranked 21 out of 326 nationally, making it
within the 10% most deprived authorities in England.
3.5.3 Thanet’s economic challenges stem from its peripheral location as well as a declining
ferry port industry and the loss of major employers, such as Pfizer. Historically, there
has been an overreliance on specific local employment sectors, such as the ferry
industry, education, pharmaceuticals and the seasonal tourism sector.
3.5.4 Thanet has a greater proportion of older people (60+) than the Kent average but fewer
people of working age (20-54). However, the area has 5.7% of all economically active
people unemployed compared to a Kent average of 3.9% (2011 Census data). By
promoting initiatives that generate jobs in the area, there is capacity in the workforce to
support economic growth.
3.5.5 However, the journey time from London makes Thanet unattractive for potential
employers for which London is the major commercial centre. The ability for business
travellers to be able to get a train from close to their place of work to/from London is
important in business location decisions.
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3.5.6 The study by Wessex Economics (January 2016) describes how, within the Greater South
East, proximity and journey time to London is a key factor influencing local economic
performance. This is most apparent in the London Travel to Work Area (where there is
significant out-commuting to London) but this same relationship exists at a greater
distance/journey time from London. There is a direct and observable relationship
between the economic performance of localities in the South East and East of England,
and their distance from London, with areas more distant (measured in time) performing
less well. Thanet has historically poor performance because it is, in effect, “at the end
of the line” from London but bringing it to around an hour’s commute from London will
change this perception. A commuting time of around one hour has been a key threshold
for those considering working in London2.
3.5.7 Whilst there is capacity in the workforce to support economic growth, it is also true that
the area has lower representation of residents with higher skills levels, which has been
a constraint on economic growth in the past (Wessex Economics, January 2016). The
Thanet Parkway proposal will stimulate additional housing because of the improvement
to rail services to London, and that will attract higher skilled residents to the area. In
turn, this will attract greater levels of inward investment. Without delivering the project
soon, the area will continue to lag further behind the rest of the county (and the South
East).
3.5.8 In conjunction with the Journey Time Improvement Scheme (JTI), the new Thanet
Parkway station will reduce the journey time between central London and Thanet to
around 1 hour and therefore improve the attractiveness of the area to businesses. It will
also increase the employment catchment area for Thanet residents so that they might
be able to live in Thanet and work elsewhere in Kent or London. A parkway station will
provide greater opportunity to access London via High Speed 1 (HS1) and improve
access to employment in Canterbury, Ashford and the rest of Kent.
3.5.9 The estimated journey time from Thanet Parkway to London St Pancras will be just over
20 minutes shorter than that from Deal and therefore the new station enhances the
accessibility of the north of the Dover district as well.
2 Savills (Insights, Commuting Trends Review, Autumn 2010) state that commuters “are a powerful force
in the property market, particularly within the 60 minute journey belt around London.” They say that
season ticket holders (i.e. commuters) account for 40%-45% of all journeys from stations within a 60 minutes journey of London; compared with 30%-35% of all journeys from stations within the range of
60-100 minutes of London. Therefore, a journey time of about an hour to a central London terminus remains the limit for many people who have to commute on a daily basis.
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3.5.10 A key driver for action is that Ramsgate Station has a substantial problem with commuter
parking. As the station car park is small (39 spaces and 3 disabled spaces compared with
a station usage of over 1.3m entries and exits in 2017/18), commuters park in
surrounding residential streets causing a nuisance to local residents and limiting the
accessibility of rail commuting for additional commuters who cannot park there. In fact,
all the existing stations are all located in the urban areas of Thanet. Whilst convenient
for those who walk, cycle or bus to the station, at peak hours, particularly at Ramsgate,
the amount of time that needs to be allowed for to drive to the station is uncertain and
creates poor journey time reliability. This provides additional benefits from Thanet
Parkway Station for the traffic management and environment at Ramsgate.
3.5.11 Thanet Parkway, conversely, will provide dedicated parking for rail commuters and
therefore encourage more people to make the majority of their journey by sustainable
means. Whereas currently cars are being driven into Ramsgate town centre, they will be
able to stay on the major roads (including the recently constructed A299 East Kent
Access Road) and avoid further vehicle emissions and congestion in the town where
there are higher numbers of pedestrians. This would benefit the local Air Quality
Management Area (AQMA) that encompasses all of urban Thanet.
3.5.12 To further encourage sustainable access to the station, KCC will work closely with bus
operators to try to ensure there is an integrated transport package with bus and train
times that align. However, ultimately the introduction of such public transport solutions
will be a commercial decision.
3.5.13 It is also proposed that electric vehicle charging points will be included at the new station
in line with the aims of the Kent Environment Strategy and Local Transport Plan 4. Access
to the station by walking and cycling will be provided by a footpath and cycleway to align
with the key principles of KCC’s Active Travel Strategy (2016).
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3.5.14 An emerging transport challenge is that key development sites in the area are not well
located in relation to the rail network. The draft Thanet Local Plan allocations can be
found in Appendix K, but consideration should also be given to the north Dover district
and particularly Discovery Park Enterprise Zone. This leading Science Park strongly
supports the station proposals because of the area’s poor rail connectivity. To
accommodate this substantial potential level of commercial and residential development
it is important that sustainable travel options are brought forward. Passenger journeys
at Ramsgate station increased by 38% between 2004/5 and 2011/12 and then a further
14% by 2016/17 but, as discussed above, the ability of the station to cope with sustained
growth is limited.
3.5.15 Thanet Parkway will be accessible to the majority of Thanet residents as well as those
in north Dover district. It will therefore be able to absorb the growing number of rail
passengers with minimal adverse impacts for local residents, particularly relieving the
existing busy town centre stations.
3.5.16 Wessex Economics (2016) reported that many studies of the regeneration and wider
economic benefits linked to investment in rail services and stations highlight that the
wider economic benefits of investing in rail services are maximised when there are
opportunities for major development in close proximity to stations (including the report
‘The Value of Station Investment, Research on Regenerative Impacts, Steer Davies
Gleeve, November 2011). Improved rail services can change perceptions of an area as
a place to live and to work. Thanet/north Dover district have many such opportunities
for development that currently suffer from poor accessibility. Considering each
development site in turn:
• Manston Park – currently poorly connected by public transport, with only one
morning and one evening weekday connection to/from Ramsgate railway station
(service 38).
• EuroKent Business Park – there is no direct bus connection between the site and
Ramsgate railway station (the nearest railway station).
• Discovery Park Enterprise Zone which today accommodates over 2,400 jobs and
150 businesses – served by an hourly bus service (87/88/88a) to Dover and
Sandwich. The bus service does not provide a connection to Sandwich railway
station itself (the closest railway station) which is an estimated 9-minute walk from
the nearest bus stop.
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3.5.17 Plans have been put forward for mixed use residential and business development on the
former Manston Airport site by Stone Hill Park Ltd. Concurrently, RiverOak Strategic
Partners are pursuing a Development Consent Order to establish a freight airport on the
site, with ancillary aviation use (such as engineering) and passenger services. Currently,
the site is served by an hourly bus service (38/38a) to Ramsgate, with a journey time of
between 9 and 10 minutes. Despite Ramsgate having good rail provision, total journey
times to the site are unattractive in comparison to travel by car. Whichever outcome is
achieved for the site, Thanet Parkway will create an attractive location for business
travellers, airport passengers, or new residents.
3.5.18 The new Parkway Station will be easily accessed from all the major employment sites in
the area and all the major areas identified for future housing development (in the period
up to 2032), so it will generally be much easier for those living or working in these
locations to use the Parkway Station rather than existing stations. Thanet Parkway
Station will make the area a more attractive place to live and do business. By delivering
Thanet Parkway, Kent County Council and other funding bodies are demonstrating to
investors and employers that we are committed to making East Kent a long-term centre
for economic prosperity.
3.6 Impact of Not Changing
3.6.1 Should the scheme not be introduced existing rail travel demand across the district will
inevitably increase in other locations, pressure will be applied to current stations and
services where commuter capacity issues are already arising. Furthermore, the lack of
existing rail infrastructure to cope with current demand will limit future economic growth
benefits and potential regeneration, considered to be vital for the district and East Kent.
3.6.2 Housing demand in Thanet is being identified through the Local Plan process. To date,
this has shown that the existing transport infrastructure will be unable to cope with the
increased demand. Appendix K shows the draft proposals for new transport
infrastructure along with the strategic site allocations. The previous plans were indicative
and have since been superseded when the proposed Local Plan was rejected by the
Thanet District Council in January 2018. There is currently uncertainty surrounding the
Local Plan but Appendix K demonstrates the scale of growth in the district as proposed
by their current draft, which will be going to examination shortly.
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Economic Growth, Jobs Provision and Social Challenges
3.6.3 Infrastructure is critical to support and secure long-term positive growth forecasts for
Thanet yet it must keep pace with the rate at which development is taking place within
the wider East Kent. Failure to address the existing infrastructure issues by not
introducing the new Parkway Station scheme will limit the achievability of population and
economic growth targets forcing investment to be accommodated elsewhere in the UK.
3.6.4 In combination with this, unemployment levels amongst the economically active
population in Thanet are higher than the Kent average. The available capacity in the
workforce suggests that there is opportunity for business investment and potential
employers to generate jobs in the area. The scheme is necessary to improve access to
jobs and employment space, needed to decrease existing levels of unemployment and
residential deprivation. If the identified infrastructural issues remain unaddressed and
current journey times high, wider current and future local economic growth will be
hindered.
3.6.5 The Wessex Economics Study estimates that an additional 400 - 800 jobs will be created
as a result of the station delivery (assuming an opening year of 2019 up to 2049). This
increase in business activity could see a critical mass reached and a further acceleration
of growth, supported by improved accessibility and increased resident skills base. Also
of note, Thanet Parkway will be substantially more accessible that other station for the
existing and proposed major employment centres, including Discovery Park, Manston
Business Park, EuroKent, Westwood Cross, and the former Manston Airport site.
3.6.6 From additional housebuilding (see below) the proposal is likely to create between 2,400
and 4,800 person years of employment in the housebuilding sector (based on the Home
Builders Federation estimates that every new home built creates 1.5 direct housebuilding
jobs), excluding jobs in the supply chain; and an estimated injection of between £12.0
– 28 million and £24.0 million to the local economy associated with additional housing
undertaking renovation works to existing homes (Wessex Economics, 2016).
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Housing Delivery
3.6.7 The Wessex Economics study found that the delivery of Thanet Parkway will likely
accelerate the rate of housing delivery. Assuming an opening year of 2019, they found
that from 2019 – 2049 the development of 1,600 – 3,200 additional homes, which
corresponds to an additional GVA of £93 - £186 million over the same period. The
additional GVA associated with the increase in the working population of the Study Area
linked to this level of additional house building is estimated at £78 - £156 million by
2049. A do nothing scenario would not see these significant benefits.
3.6.8 It is likely that development allocations in the years after Thanet Parkway is built will be
influenced by the new station. New sites may be brought forward based on the more
desirable commuting times to London and other employment centres afforded by the
accessibility of the station that would otherwise have not benefited from such
connectivity.
3.6.9 Evidence from other Parkway stations has shown that passenger numbers rapidly
increase as a result of in-migration of people wishing to commute to London and
therefore increased housing growth. For example, Southampton Airport Parkway
increased parking capacity and saw extensive building of new homes in its catchment
area (journey time to London Waterloo of 1 hour 8 minutes – directly comparable to
Thanet Parkway).
Environmental Challenges
3.6.10 A do nothing scenario is likely to have significant environmental dis-benefits in Ramsgate
and across the wider Thanet district. Station parking is insufficient in meeting current
and future demands causing issues in adjacent residential areas, where many station
users park on street for free. Additionally, the consequential increase in the number of
vehicle trips to and from the station negatively impacts residential noise and air quality.
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3.7 Internal Drivers for Change
3.7.1 A key delivery strand of 21st Century Kent—Unlocking Kent’s Potential, ‘Growth Without
Gridlock’ outlines how economic growth and regeneration can be delivered in a
sustainable way and what infrastructure is needed to deliver an integrated transport
network which is fit for purpose in the 21st Century. This strand has been continued
through to ‘Local Transport Plan 4: Delivering Growth without Gridlock’ and the ‘Growth
and Infrastructure Framework’. If Kent is to accommodate this growth, its transport
network must be well managed and have sufficient capacity and resilience to provide for
efficient and reliable journeys. The scheme will encourage the use of sustainable
transport modes through a number of measures including:
• Secure cycle parking close to the entrance to the station building;
• Dedicated cycling and walking routes;
• Bus pick up and drop off point close to the entrance to the station building with
waiting facilities including weather shelter and timetable information; and
• Dedicated electric vehicle charging points within the long stay car park to
encourage the use of alternative technology vehicles.
3.7.2 The economic viability of the whole target area will be compromised by the lack of
sustainable transport options. Bus services cannot be improved in road conditions which
are congested by vehicles accessing existing stations. Off street car parking is
pressurised leading to further on street parking and associated congestion. Door to door
journey times will continue to grow. Infrastructural changes are essential to provide for
sustainable growth resulting from local and regional policy.
3.8 External Drivers for Change
3.8.1 Wider external pressures resulting from national policy and legislation seek to boost
economic growth, prosperity and opportunity through a series of objectives that
determine necessary improvements to journey times, transport infrastructure and
sustainable transport systems.
3.8.2 Improving access to sustainable multi-modal transport and improving journey times is
fundamentally the primary driver for change, along with the planned growth of housing
and jobs across the South East. This supports the assertion that the existing problems
are likely to worsen in the future if infrastructural needs are not addressed in line with
wider policy.
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3.9 Objectives
3.9.1 As discussed above, the Thanet Parkway scheme needs to address existing and future
weaknesses in Thanet’s rail and wider transport system to ensure that the development
of the transport network keeps pace with the rate of economic growth predicted for the
South East. The scheme will therefore address the weaknesses in the current transport
provision, providing improved rail journey times, enhanced rail access, increased parking
capacity, reduced vehicle emissions in congested areas, and improve the attractiveness
of Thanet as a district to residents, employers, visitors and potential investors.
3.9.2 Investment in the proposed Thanet Parkway Station will support improved connectivity
to key sites (employment and residential) and maximise value from build-out at key
future development sites. This investment will help to drive economic growth, both in
the local area and the wider south east region.
3.9.3 Failure to act now will result in an opportunity cost. The potential to support and enhance
the planned and future growth in Thanet and north Dover district will be lost or delayed,
and economic growth in the area will not be able to keep pace with the rest of Kent and
the South East.
3.9.4 The scheme objectives in Table 3.2 have been set out by KCC and align with wider KCC
strategic aims that have been reiterated in a number of public documents, these aims
are outlined below and stem from the original assessment objectives but adapted for the
preferred option:
• Improve journey times for the high speed service;
• Increase the attractiveness of East Kent to employers;
• Support the economy by unlocking new economic development opportunities;
• Reduce environmental impacts for local residents; and
• Improve accessibility and employment opportunities in Thanet through the
provision of Thanet Parkway Station.
3.9.5 The scheme objectives have been used to develop the desired targets and outcomes for
the scheme. The desired targets are the actual benefits that are expected to be derived
from the scheme (i.e. taken from the future monitoring and evaluation report) and are
directly linked to the original set of objectives in Table 3.2. The definition of outputs and
outcomes are:
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• Targets – tangible effects that are produced directly as a result of the scheme
(Thanet Parkway Station Objectives); and
• Outcomes – final measurable impacts brought about by the scheme.
3.9.6 Table 3.2 specifies clear SMART objectives of the Thanet Parkway Station scheme
together against measurable outcomes that will ensure the overall success of the
scheme is accurately understood.
3.9.7 These objectives clearly align with national, regional and local planning policies.
Particularly in relation to accelerating the delivery of development, boosting economic
growth and improving the economic situation in disadvantaged coastal areas.
Table 3.2: Objectives and Measurable Outcomes
Objective Measurable Outcomes
1. Accelerate the pace of housing
delivery in Thanet.
1,600 – 3,200 additional homes delivered
between opening year and year 30.
2. Positively contribute to economic
growth by attracting higher skilled
workers to the area.
Measured by data from 2011, 2021 and
2031 census showing change in
educational attainment of the population.
3. Stimulate the creation of additional
jobs by encouraging business location
and expansion decisions based on the
existence of the new station and
journey times to London of around 1
hour.
Measured by data from the Kent Invicta
Chamber of Commerce, Locate in Kent
and the district Local Planning authorities.
400 - 800 additional jobs from opening
year to year 30. Reduced unemployment
figures.
4. Generate over 50,000 new rail
journeys from first full operational
year (2022).
Measured by new ticket sales from the
new station compared with ticket sales
from the existing stations in the area.
5. Increase week day usage of the new
station year on year from 412 in 2022,
to 456 in 2026.
Measured by rail ticket receipts.
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Objective Measurable Outcomes
6. Provide rail access from Thanet to
London with a journey time of around
one hour.
Measured by checking new timetable (with
Parkway station) compared with existing
timetable (without parkway station)
against published performance figures.
7. Provide commuters with alternative
access to the area for journeys that
might otherwise be made on the local
and strategic highway network from
opening year and increasing by 2031.
Measured by the utilisation of the 300
parking spaces, including 8 electric vehicle
parking spaces and 40 cycle parking
spaces, achieving 54% capacity use in
2021 increasing to 75% in 2031 which will
be measured by car park ticket numbers.
3.10 Scope
3.10.1 Details of the scheme (and its scope) have been provided in section 2 of this report with
a detailed drawing of the extent of the scheme provided in Appendix A.
3.11 Constraints
3.11.1 There are a number of potential constraints surrounding the proposed Thanet Parkway
Station scheme these are discussed throughout the business case. These include:
• Level crossing constraints related to the possible need to carry out works within
the section of track bounded by the automatic half barrier crossing (AHB) at
Sevenscore and the AHB Cliffsend crossing. Network Rail have now indicated that
the two AHB level crossings do not need replacement based on the current
forecast vehicular traffic flows, although signalling upgrades may be required.
Should vehicular flows be significantly higher than forecast then one or both
crossings may need replacement;
• Land ownership constraints related to the need to acquire privately owned land for
the delivery of the project. The negotiations are advanced and the Heads of Terms
for the sale are in progress;
• Planning Permission constraints. Following the completion of the Environmental
Impact Assessment a planning application was submitted in May 2018;
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• Civil engineering constraints related to platform construction. Site investigations
will be required during the next phase of design to ascertain the extent of this risk
and any remedial actions but these have been commissioned as part of GRIP 4;
and
• Environmental constraints which may affect the construction of the station.
Scoping work was undertaken as part of the planning application which are
feeding into the GRIP 4 design.
3.11.2 Both externally and internally imposed constraints will be managed from the outset and
will be discussed throughout the business case. In addition to this, the project team will
ensure that there are no technical issues with the scheme design that may hinder the
development, delivery and on-going operation of the project and will be guided by the
management case (Chapter 7).
3.12 Inter-dependencies
3.12.1 There are internal and external factors upon which the successful delivery of the Thanet
Parkway Station scheme is dependent. The proposed scheme conforms with priorities
set by the national, regional and local policy environments. Successful delivery will
require continued alignment with policy priorities and subsequent political support.
3.12.2 A critical dependency is the completion of the Journey Time Improvement (JTI) scheme,
which is on schedule for the December 2021 timetable change. This scheme is critical to
the delivery of the project because it delivers a gain in scheduled journey time that
compensates for the loss of journey time incurred by trains stopping at the new station.
The JTI scheme is a joint KCC-Network Rail project to reduce journey time to Thanet
through signalling and track alignment improvements between Ashford International and
Ramsgate stations. JTI is expected to deliver a 3 minute saving (2 minutes in 2019, 1
minute in 2021) to Thanet district so that a new station could be accommodated within
the existing timetable without increasing journey times to Ramsgate. A further 2 minutes
has already been delivered compared with the 2014 timetable.
3.12.3 A further dependency is the requirement to identify alternative funding source(s)
following an unsuccessful bid for funding from the New Stations Fund 2 from DfT.
3.12.4 A list of risks has been prepared as part of the management case (Chapter 7). The
delivery of the scheme is dependent on these risks either not arising or being sufficiently
mitigated so that scheme delivery remains unaffected.
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3.13 Stakeholders
3.13.1 Consultation with the community, members, and local representatives is a vital part of a
scheme’s development. If undertaken successfully and inclusively, consultation can
ensure the success of a project and enables great certainty of delivery to both time and
budget.
3.13.2 Engagement has taken place with the following key stakeholders, as identified by KCC
and outlined below:
• Thanet District Council (TDC);
• Dover District Council;
• Thanet and KCC Cllrs;
• Land Owners;
• Local Residents;
• Local Businesses;
• Parish and Town Councils in Thanet and Dover;
• Users of the existing high speed service;
• Network Rail;
• Southeastern;
• Environment Agency;
• Statutory Undertakers; and
• Bus Companies.
3.13.3 Information on the level of consultation held with each of the stakeholders is provided
below and where applicable, key details of the stakeholder management plan and
engagement are also outlined in the Management Case (Section 7).
3.13.4 The scheme was presented to Thanet District Council, Dover District Council and Kent
County Councillors at Joint Transport Board Meetings in December 2014. The scheme
was well received and supported by the councillors.
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3.13.5 In 2015 an initial public consultation on the high level design, impacts and benefits of
the scheme was held. This consisted of seven events across East Kent, supported by a
range of consultation documents. The consultation received a total of 529 responses
and was generally well received. The outcome of the consultation has been used to
shape the final scheme design, planning application and Environmental Impact
Assessment (EIA) work. Scoping work is being undertaken as part of the planning
application which will consider these issues further.
3.13.6 A second eight week public consultation was held in early 2017 to inform the planning
application, with a period of pre-consultation engagement with all stakeholders. Kent
County Council understands the importance of engaging with key stakeholders to gain
feedback and will endeavour to incorporate the views of those with an interest in the
project. The planning application has also been subjected to the statutory consultation
period.
3.13.7 KCC is currently in negotiation with the affected land owner to consider the cost of
acquiring the section of land required to develop the scheme. These negotiations are in
their latter stages.
3.13.8 Alongside this, Kent County Council holds regular quarterly Project Board meetings which
are represented by Thanet District Council, Dover District Council, Southeastern,
Network Rail and the Department for Transport.
3.13.9 Statutory Undertakers have also been consulted with in regards to the proposed design.
3.14 Options
3.14.1 From initial identification of the problem, a number of options were considered and KCC
went through an iterative appraisal process to arrive at a preferred option that achieves
value for money and delivers the identified objectives. Appendix E1 sets out in full
detail the identification of the problem and how a range of options (including non-rail
options) were appraised against the initial objectives, which were:
• Bring Thanet closer to London (reduce journey times for the high speed service);
• Increase the attractiveness of East Kent to employers;
• Support the economy by unlocking new economic development opportunities and
attracting inward investment;
• Improve accessibility to employment and housing sites.
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3.14.2 Six options were initially identified to provide better connectivity between sites planned
for development in East Kent with London and the wider Kent area. These options are
listed in Table 3-3 together with the ‘do minimum’ scenario:
Table 3-3 Identified Options
Option Outcome
1 Deliver a new ‘Thanet
Parkway’ railway station.
selected as the ‘preferred option’.
2 Increase car parking
provision at Ramsgate
Station
shortlisted for further investigation but rejected due to
the lack of land in the residential area around the station.
3 Increase car parking
provision at Minster Station
rejected due to unsuitable local highway network, impact
on Minster village and poorer rail service at Minster.
4 Shuttle bus from the
Birchington-On-Sea Station
rejected due to unattractive journey times and lack of rail
access to Ashford, Canterbury and Maidstone.
5 Direct coach service from
London
rejected due to long journey times and low impact on
economic growth.
6 Shuttle bus from Ramsgate
Station
rejected due to lack of suitable terminus at Ramsgate and
low impact on economic growth.
3.14.3 After analysis of each of the options, options 1 and 2 were shortlisted for further
investigation against the do minimum option. While the other options would be less
expensive, they were not anticipated to deliver the overall objectives of supporting
growth of the East Kent economy and increasing employment opportunities.
3.14.4 Option 2 was later discounted due to the unavailability of land to provide additional car
parking facilities at Ramsgate station.
3.14.5 The ‘preferred’ option, Option 1 (deliver a new ‘Thanet Parkway’ railway station) was
then selected as the most appropriate option to achieve KCC’s strategic aspirations for
East Kent. This option was seen to have a positive impact in enhancing the
attractiveness of East Kent for investment and a high impact on growth by unlocking
development sites previously only accessible by private car and providing future station
capacity to support the development of housing and commercial growth in the area.
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3.14.6 Further feasibility work investigated possible sites for a new station. It was concluded
that between Minster and Ramsgate on the Ashford to Ramsgate line would be the most
suitable location because it would improve rail access to both Thanet and the north of
Dover District. A new station in this location would also be served by High Speed 1
services and could take advantage of the full benefits of the Journey Time Improvement
scheme, resulting in a journey time to London of around 1 hour. A study of this route to
find the most suitable location for the station concluded that the plot of land to the west
of Cliffsend village was the only option without significant railway, environmental or
planning constraints.
3.14.7 The full Thanet Parkway Alternative Options Analysis and Alternative Site Appraisal can
be found in Appendix E1 and E2.
3.14.8 As can be seen, a range of alternative options were appraised and then, once the
development of a new station was selected, alternative locations for the scheme were
assessed. A new station was selected because of the potentially transformative benefits
compared with increased parking at existing stations or shuttle bus links. Without
prejudice to the future land use at the former Manston Airport Site, the Stone Hill Park
marketing materials3 include the new Thanet Parkway as a key transport link for potential
residents to London4. This, and the support from Discovery Park at Sandwich, illustrates
investor confidence in this major rail accessibility upgrade.
3 http://www.stonehillpark.co.uk/ 4 Noting that the core scenario for the business case appraisal does not include Stone Hill Park due to the
uncertainty around the future of the former Manston Airport Site whilst the RiverOak Development Consent Order application is examined. Whether a mixed use residential development or aviation is the
future for the site, Thanet Parkway is shown to provide high value for money and support either land use at the former Manston Airport.
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3.14.9 In developing the station, a range of alternative funding streams have also been
explored. This includes the New Stations Fund 2 (run by DfT and Network Rail), to which
an application was made in November 2016. Unfortunately, the project was unsuccessful
but, according to DfT feedback, this was largely because of the strong positive financial
case and the ability of this to attract private sector funding. This possibility aligned with
the re-franchising process for the South Eastern Rail franchise and so discussions were
had with the prospective bidders given that the newly generated additional revenue from
the station would go to the incoming Train Operating Company within the context of the
franchise agreement with DfT. An announcement on the winning bidder is yet to be
made. Other private sector investment opportunities were explored but given the flow
of ticket revenue within the franchise, it has not proved an attractive investment.
Consequently, due to the aims of the project to bring regeneration and wider economic
benefits, the funding for the project must come from the public sector.
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4 Economic Case
4.1 Introduction
4.1.1 The Economic Case provides evidence of how the scheme is predicted to perform, in
relation to its stated objectives, identified problems and targeted outcomes. Ultimately,
the Economic Case determines if the proposed Thanet Parkway passenger railway station
at Cliffsend is a viable investment, whose strengths outweigh its weaknesses and
provides good value for money.
4.1.2 The predicted scheme appraisal focuses on those aspects of scheme performance that
are relevant to the nature of the intervention. However, the impacts considered are not
limited to those directly impacting on the measured economy, nor to those which can be
monetised. The economic, environmental, social and distributional impacts of the
proposal are all examined, using qualitative, quantitative and monetised information. In
assessing value for money, all of these are consolidated to determine the extent to which
the scheme benefits outweigh its costs.
4.1.3 The economic appraisal has been tailored to reflect the needs of the Thanet Parkway
Station scheme Business Case and is discussed under the following headings:
• Options Appraised;
• Value for Money Method;
• Scope for Proportionality in the Assessment
• Assumptions;
• Initial NPV
• Adjusted NPV
• Sensitivity;
• Qualitative Impacts;
• Appraisal Summary Table (AST);
• Value for Money Statement; and
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4.2 Options Appraised
4.2.1 The Strategic Case sets out the possibilities for connectivity improvements between sites
planned for development in East Kent with London and the wider Kent area which are
considered appropriate to providing additional capacity on to the existing transport
network. These have been assessed against the Thanet Parkway project objectives and
KCC wider strategic objectives. The best performing option is delivery of a new ‘Thanet
Parkway’ railway station, which was selected against the following list of options:
• Deliver a new ‘Thanet Parkway’ railway station;
• Increase car parking provision at Ramsgate Station;
• Increase car parking provision at Minster Station;
• Shuttle bus from the Birchington-On-Sea Station;
• Direct coach service from London; and
• Shuttle bus from Ramsgate Station.
4.2.2 The preferred option will constitute the ‘Do Something’ option for appraisal purposes
which will be assessed against a ‘Do Minimum’ option whereby no new Thanet Parkway
Station scheme is introduced.
4.3 Value for Money Method
4.3.1 The criteria for assessing the likely performance of the named scheme have been
established in terms of measures for success as outlined in the Strategic Case, as they
will predict the scheme’s ability to achieve its objectives and resolve identified problems.
4.3.2 The Economic Case for this scheme is focused on:
• Assessing the monetised direct, localised and economic efficiency benefits of the
scheme;
• Qualitatively appraising the wider scheme benefits, in terms of enabling planned
developments; and
• Offsetting the scheme benefits against the direct scheme capital costs.
4.3.3 Figure 4-1 shows the approach used to develop the economic case for the Thanet
Parkway railway station scheme.
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Figure 4-1: Value for Money Process
4.3.4 This value for money process follows guidance contained within ‘Value for Money
Assessment: Advice Note for Local Transportation Decision Makers’ – December 2013.
Whilst the process of this guidance has been followed, the value for money metric used
to show value in this economic case is the Net Present Value (NPV) as supposed to the
Benefit Cost Ratio (BCR). The NPV is a sum of benefits (Present Value of Benefits or
PVB) minus the sum of costs (Present Value costs or PVC). This is in accordance with
the ‘Value for Money Framework: Moving Britain Ahead’ – July 2017, which states where
the Present Value of Costs (PVC) is negative, it is more appropriate to calculate and
report the NPV as the BCR is difficult to interpret and therefore should not be calculated
(DfT 2017 para 4.11/12).
4.3.5 The PVC is a negative value in this instance as the rail fare revenues are assumed to
accrue to DfT or Central Government. Therefore, future revenue generated by the station
through the franchise will go to the DfT, increasing transport budget available to central
government and effectively offsetting the cost of the station. This means that the
revenues received by Central Government from the scheme, exceed the scheme or
investment costs expended by government and the scheme is financially positive. See
Appendix B for more information.
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Stage 1 - Initial NPV
4.3.6 The Value for Money assessment follows guidance contained within ‘Value for Money
Assessment: Advice Note for Local Transport Decision Makers’ – December 2013. Stage
1 assesses those impacts that can be expressed in monetary terms. These monetised
impacts are summed to construct an Initial NPV.
4.3.7 Calculation of benefits was based on the outputs of a spreadsheet-based model which
was constructed specifically for the purpose of supporting the Business Case. The model
is based on a previously approved version created by Network Rail and is contained in
this report as Appendix C.
4.3.8 The initial NPV has been assessed within a WebTAG compliant framework drawing on
the following:
• An assessment of monetised economic impacts (i.e. user benefits, additional rail
and parking revenue, Kiosk income and station / car park capital, operating and
maintenance costs impacts);
• An assessment of monetised non user impacts, namely: congestion, infrastructure,
greenhouse gas emissions; air quality; and noise impacts;
• An assessment of monetised social impacts, namely: commuting and other users
travel time and accident impacts; and
• An assessment of public accounts impacts, namely: cost to the broad transport
budget; and changes in indirect taxes.
Stage 2 - Adjusted NPV
4.3.9 The second stage of a Value for Money assessment builds on the initial monetised costs
and benefits.
4.3.10 An Adjusted NPV incorporates quantitative information on those impacts which can be
monetised, but where the evidence base used to derive the monetary values is less
robust than values used for the initial NPV. Guidance is provided on available methods
for assessing Reliability, Option Values, Regeneration, Wider Impacts and Landscape to
support an adjusted NPV.
4.3.11 Monetised values for these impacts have not been derived for the Thanet Parkway
Scheme and the Initial NPV is therefore not adjusted. Qualitative impacts have been
considered for reliability and Landscape.
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Stage 3 - Qualitative Impacts
4.3.12 At Stage 3, where a monetary assessment is not feasible, analysis of non-monetised
impacts has been undertaken in accordance with the methodology recommended within
the relevant WebTAG units. These impacts not normally monetised but assessed
qualitatively are as follows:
• Townscape;
• Historic Environment;
• Biodiversity;
• Water Environment;
• Security;
• Access to Services;
• Affordability and
• Severance.
Stage 4 – Value for Money (VfM) Statement
4.3.13 Finally, at Stage 4 a Value for Money conclusion has been drawn considering the
evidence pulled together from Stages 1 to 3.
4.4 Scope for Proportionality in the Assessment
4.4.1 This business case has made an assessment of the potential impacts presented in DfT
WebTAG guidance. A detailed assessment has not been provided for:
• Delays during construction;
• Wider impacts;
• Physical activity;
• Security;
• Option values and non-use values;
• Accessibility; and
• Affordability.
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Delays during Construction
4.4.2 Delays during construction and maintenance are not expected to have a significant effect
on the scheme NPV and Value for Money. The nature of the scheme is such that it will
largely be constructed off-line, with minimal impact on existing rail users. Therefore,
construction delay and maintenance impacts have not been included in the analysis.
Wider Impacts
4.4.3 Thanet Parkway Station is an important part of facilitating significant housing growth in
Thanet. In addition, whilst not a Functional Urban Region (FUR) as highlighted in
WebTAG A2.1 there is some expected economic benefit for the region with the nearby
‘Enterprise Zone’ (Discovery Park). An assessment has been commissioned by KCC in
this regard but it is not included at this stage of the business case process.
Physical Activity
4.4.4 Some modal shift from car to rail might be expected from rail users walking or cycling
to and from the rail station at both ends of their journey. However, the proposed scheme
is expected to result in a limited impact in terms of physical activity and a quantitative
assessment has not been carried out (WebTAG Unit A4.1).
Security
4.4.5 The station will include CCTV and other standard security features which will benefit rail
users but offer no change to non-users. The change to security is arising due to the
scheme is expected to be minimal and therefore no assessment is included.
Option Values and Non-use Values
4.4.6 Option and non-use values should be assessed if the scheme being appraised includes
measures that will substantially change the availability of transport services within the
study area (e.g. the opening or closure of a rail service, or the introduction or withdrawal
of buses serving a specific rural area). This appraisal is not required for Thanet Parkway
Station as there will not be a substantial change in the availability of transport services
within the study area.
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Accessibility
4.4.7 Although there will be some improvement in access to services through additional mode
choice that will be available, there are no proposed changes in routings or timings of
current public transport services. An assessment of access to services has not been
carried out.
Affordability
4.4.8 The scheme is likely to slightly reduce travel costs through user time savings. However,
its impacts on overall affordability will be small and therefore no assessment will be
completed.
Renewals and Maintenance
4.4.9 Once completed, the station will be transferred to Network Rail. The responsibility for
long-term renewals will sit with Network Rail and be funded through their usual Control
Period process. The specification for the new South Eastern Franchise (due to commence
in June 2019) compels the new Train Operating Company to enter into a station lease
for Thanet Parkway, which will ensure they have responsibility for day-to-day
maintenance.
4.5 Assumptions
Demand Modelling
4.5.1 This section summarises the key assumptions supporting the Value for Money analysis.
This includes the assumptions set out in WebTAG as well as further assumptions specific
to the Thanet Parkway Station scheme. The Passenger Demand Modelling Report
(Appendix L) explains the data and approach to modelling in more detail.
4.5.2 The demand forecasting approach that has been used is relevant to the stage of the
scheme development (GRIP stage 3) and complies with the following guidelines:
• Transport Analysis Guidance (WebTAG Unit A5.3 – Rail Appraisal, May 2018);
• Passenger Demand Forecasting Handbook (PDFH), Version 6.0, Rail Delivery
Group (Formerly Association of Train Operating Companies (ATOC), May 2018;
• Network Rail GRIP Process;
• Association of Train Operating Companies (ATOC);
• The Office of Rail and Road (ORR); and
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• Industry best standards.
4.5.3 The following data sources were used to build the base year model:
• Ramsgate and Canterbury interview data - passenger interviews were conducted
at Ramsgate and Canterbury stations from 0700 to 1900 on a neutral weekday in
November 2013. The data was used to establish the trip-distance curve (using
home origin postcodes and access mode) for walking/cycling access and trip-time
curve for car/other access and to verify top rail destinations found using MOIRA
data.
• Ramsgate and Canterbury count data - passenger counts were conducted
simultaneously with the passenger interviews in November 2013, again from 0700
to 1900. This data was used to gain the 12-hour boarding count and the 0700-
0930 boarding count.
• ITN and TrafficMaster data from KCC – used to determine vehicle journey times to
each of the rail stations in the study area.
• NRTS data - used to expand the 12hr Ramsgate count data to 24hr count data -
The Ramsgate survey provided a count of boarding passengers during the time
period 0700-1900. Significant numbers board at the station before 0700, so it was
necessary to expand the count to provide an estimate of a full 24hr day, using the
NRTS data for Ramsgate which covers all time periods.
• National Rail website - for all current rail timetable and fares data, plus station
parking spaces and charges.
• Census population data - current 2011 data from the Office of National Statistics
was used in the trip element of the trip-distance curves (in the form of trips per
thousand resident population), and in the base model’s general trip number
calculations. Population data projections from the same source were used in
future-year trip calculations.
4.5.4 Key destinations and access modes were assessed for passengers boarding at Ramsgate.
MOIRA output data was used to find the most popular destinations.
4.5.5 Generalised journey times were derived for each station in the study area, from the
mean service interval and transit time, rail fare and parking charge.
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4.5.6 An OmniTrans model was constructed for the purpose of assessing drive times (peak
period) and distances (for walk access) from across the study area to each of the rail
stations in the study area. A zoning system based on Census geography was used and
matrices of times and distances were copied from OmniTrans into the spreadsheet
model. It should be noted that the OmniTrans model is not a true highway model in this
case but used to extract relevant data in relation to journey times.
4.5.7 Journey time improvements proposed on the East Kent line have been included within
the assessment.
4.5.8 Expansion factors for identifying weekend passenger numbers were calculated using the
relative proportion of weekday-to-weekend rail trips made, drawn from the National
Travel Survey.
4.5.9 The results were applied to the future-year population data, for low, medium and high
growth scenarios and using adjusted ONS projections by local authority, with and without
Thanet Parkway in operation, including the modelled passenger numbers for the
proposed Thanet Parkway station itself.
4.5.10 The estimated demand for parking at Thanet Parkway station car park was calculated
using the modelled passenger numbers by car/other in conjunction with the proportion
derived from drive-plus-lift from the Ramsgate interview data.
Modelling Summary
4.5.11 The methodology used is what is known as a ‘Trip Rate’ approach and is a recognised
method for assessing the likely patronage of a new station such as Thanet Parkway. The
approach does not explicitly model mode shift from other modes such as car or bus onto
rail, but in essence uses existing data to determine the likely number of trips that could
be made by rail from any location by determining a ‘trip rate’. In this case it is ‘the
number of trips per thousand of the population’ within any zone that would use rail.
4.5.12 The data sources referred to have been used as observed data to determine this trip
rate. Existing station data is used (in this case a mixture of station surveys and NRTS
data). The curves are based on observed data, unlike traditional modelling; there is no
need to undertake a validation and calibration exercise as the outputs from the trip rate
curve are bench marked against the observed ORR total number of trips at each station.
4.5.13 This is a recognised industry approach and that the trip rate curves are bench marked
against the ORR data that the model is fit for purpose for deriving future demand at
Thanet Parkway Station.
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Present Value Year/Discounting
4.5.14 The economic assessment has been summarised with costs and benefits discounted to
a ‘present value year’ of 2010, at a ‘discount rate’ of 3.5% per annum for the first 30
years and a rate of 3.0% for the subsequent 30 years.
4.5.15 All items evaluated in the economic assessment are monetary ‘costs’ of transport.
Appraisal Period
4.5.16 The appraisal has been completed for a 60-year assessment period (2021-2081).
Opening Year
4.5.17 Opening Year for the proposed Thanet Parkway Station scheme is expected to be the
financial year 2020-2021. This ‘first scheme year’ of 2021 has been taken into account
in the capital expenditure calculations.
Allowances for Uncertainty
4.5.18 The potential impacts of the Thanet Parkway Station scheme need to be considered in
the wider context of forecast housing growth in Thanet district. They have, therefore,
been assessed for a range of possible conditions, covering ‘low’, ‘medium’ and ‘high’
housing growth outcomes, as recommended in DfT Transport Analysis Guidance
(WebTAG). The key components of these situations are as follows:
Low Growth Scenario
• Inclusion of committed land use developments only, with assumed full completion
at these sites.
Medium Growth Scenario
• Inclusion of certain and near certain land use developments i.e. developments
outlined in the emerging Thanet Local Plan growth.
High Growth Scenario
• Inclusion of certain, near certain, more than likely and reasonably foreseeable
land-use developments. (Additional growth at the former Manston Airport site –
the Stone Hill Park proposals).
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4.5.19 The make-up of growth scenarios has been determined using professional judgement
but guided by agreement with KCC regarding accuracy of NTEM planning data and the
likelihood of specific developments proceeding. The Medium Growth Scenario has been
adopted as the Core scenario for the scheme assessment.
4.5.20 Full details of the assumptions adopted are contained in the ‘Thanet Parkway Station –
Full Business Case Economics TN01 v2’ (PBA, 2018), in Appendix B.
4.6 Initial NPV
4.6.1 As previously outlined, the Initial NPV consists of four key components, namely:
• An assessment of monetised economic impacts (i.e. user benefits, additional rail
and parking revenue, kiosk income and station/car park capital, operating and
maintenance costs);
• An assessment of monetised non-user impacts, namely: congestion, infrastructure,
greenhouse gas emissions; air quality; and noise impacts;
• An assessment of monetised social impacts, namely: commuting and other users
travel time and accident impacts; and
• An assessment of public accounts impacts, namely: cost to the broad transport
budget; and changes in indirect taxes.
4.6.2 Results from the monetised values of additional rail revenue (willingness to pay to travel
by train for the newly generated rail trips), time saving benefits to rail passengers (user
benefits) and remaining car users (non-user benefits), operating cost savings of reduced
congestion have been combined, to give an initial assessment of scheme impact.
4.6.3 The Initial NPV is based on the monetised costs and benefits for the Core Scenario,
assuming medium growth, including the level crossing at project Level 4 (optimism bias
of 9% as per Tag Unit A5.3) summarised in Table 4.1.
Table 4.1: Initial Scheme Impact (Medium Growth)
Value (£m) 2010 prices, discounted to 2010
Parking Revenue 5.99
Private Sector Revenue 0.51
Operating Expenditure Costs -5.51
User Benefits 2.39
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Value (£m) 2010 prices, discounted to 2010
Non-User Benefits 2.5
Present Value of Benefits (PVB) 5.88
Capital Expenditure Costs 21.46
Fares Income -37.93
Present Value of Costs (PVC) -16.47
Net Present Value (NPV) 22.34
Net Present Value/ Capital cost (NPV/k)
£1.04
4.6.4 The costs and benefits outlined above show that the Initial NPV of the scheme including
the consideration of level crossing works, based on standard monetised values, for the
Medium growth scenario is £22,342,000. A positive NPV demonstrates a positive return
resulting from the investment provided by the scheme, the higher that value the more
benefit the scheme results in. The DfT’s ‘Value for Money Framework: Moving Britain
Ahead’ guidance indicates that in instances where outlays are less than revenues and
cost savings combined, as demonstrated here, then the scheme demonstrates “Very
High (and Financially Positive)” cost savings (DfT 2017, box 5,2).
4.6.5 The NPV/k (where ‘k’ is the capital investment) is a measure of the net benefit of the
scheme representing the benefit per pound of capital expenditure. The NVP/k for the
core scenario is £1.04 representing a positive return on investment and a scheme that
is financially positive.
4.7 Sensitivity
4.7.1 A series of sensitivity tests have been undertaken to understand how some of the
parameters and assumptions used within the appraisal of Thanet Parkway Station
influence the economic and commercial case of the proposal.
4.7.2 Sensitivity tests have been undertaken to assess the impact of the following:
• 10 and 30 year additional passenger demand caps;
• Contribution of car park revenue;
• Potential fare evasion;
• Level 3 optimism bias at 18%.
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4.7.3 Full details of sensitivities accounted for are contained in the Thanet Parkway Station –
Full Business Case Economics TN01 v2’ (PBA, 2018), contained within Appendix B.
4.7.4 The results of the sensitivity tests undertaken, summarised in Table 4.2 (include level
crossing works), show that all scenarios generate a positive Economic Net Present Value.
The station can be expected to have a net economic benefit to society as a whole.
Table 4.2: Sensitivity Tests
Sensitivity Test PVB NPV NPV/k
Medium growth with car park revenue – Level 4 5.88 22.34 £1.04
Medium growth with car park revenue – Level 3 5.88 20.57 £0.89
10 year passenger demand cap – Level 4 4.99 11.66 £0.54
30 year passenger demand cap – Level 4 6.44 30.75 £1.43
Medium growth with car park revenue & 5% fare evasion – Level 4
5.87 20.45 £0.95
Medium growth without car park revenue – Level 4 -0.11 16.36 £0.76
4.8 Qualitative Impacts
Impacts on the Economy
Reliability Impact on Business Users
4.8.2 Reliability is defined as a variation in journey times that transport users are unable to
predict. Measurements of the monetised journey time reliability benefits from a scheme
proposal should be based solely on the unpredictable variation, because of the extra
costs incurred by travellers.
4.8.3 Train travel is generally considered more reliable than road travel and this is likely to
bring about some mode shift from the private car. Therefore the qualitative impact score
for reliability impact on business, commuting and other users is assumed to be slight
beneficial.
Impacts on the Environment
Landscape
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4.8.4 The packet of land that would be used for Thanet Parkway is within the triangular plot
formed by the existing railway and the relatively recent highway infrastructure of East
Kent Access (EKA). Therefore, no great detriment is likely in addition to the impacts
which occurred with the introduction of EKA. Mitigation has been proposed in the
planning application. The qualitative impact score for landscape is therefore neutral.
Townscape
4.8.5 The proposed location of the Thanet Parkway site is located in close proximity to the
built-up area of Cliffsend, however, is on the opposite side of the existing railway line to
residential properties. Mitigation has been proposed in the planning application. As such
the significance of impact is deemed to be neutral.
Historic Environment
4.8.6 As previously mentioned for other aspects, there is no notable impact in addition to those
that occurred with the EKA scheme. The English Heritage monument (St Augustine’s
Cross) is noted on the other side of the railway. Mitigation for any archaeologically
significant finds will be proposed in the detailed design for the scheme. The qualitative
impact score for historic environment is therefore neutral.
Biodiversity
4.8.7 No significant impact on the local biodiversity is anticipated. There would be minor
adverse impacts on ecological habitats such as wildlife links. The impacts will be
mitigated by minimising severance of wildlife links at the detailed design stage. Mitigation
has also been proposed in the planning application.
Water Environment
4.8.8 The impact of the scheme on the water environment has not been assessed.
Social Impacts
Reliability Impact on Commuter and Other Users
4.8.9 Reliability is defined as a variation in journey times that transport users are unable to
predict. Measurements of the monetised journey time reliability benefits from a scheme
proposal should be based solely on the unpredictable variation, because of the extra
costs incurred by travellers.
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4.8.10 Train travel is generally considered more reliable than road travel and this is likely to
bring about some mode shift from the private car. Therefore, the qualitative impact score
allocated for reliability impact on commuting and other users is slight beneficial.
Journey Quality
4.8.11 Journey quality can be affected both by travellers and by network providers and
operators. Journey quality will be improved as a result of mode shift from car or bus.
Driver and passenger stress will be reduced as a result of improved reliability and
travelling environment. The qualitative impact score allocated for journey quality is
slight beneficial.
Severance
4.8.12 The new station would not add to the severance that already exists due to the railway.
Therefore, a qualitative impact score of neutral has been applied.
Overall Qualitative Impact
4.8.13 The outcome of the qualitative assessments are summarised in Table 4.3. Overall, the
findings of the qualitative assessments are not considered to be significant enough to
impact on the adjusted NPV category of High.
Table 4.3: Summary of Qualitative Impacts
Qualitative Impacts Qualitative Score
Reliability impact on Business Users Slight beneficial
Landscape Neutral
Townscape Neutral
Historic environment Neutral
Biodiversity Slight adverse
Water environment Not assessed
Reliability impact on Commuter and other users Slight beneficial
Journey Quality Slight beneficial
Severance Neutral
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Qualitative Impacts Qualitative Score
Overall Qualitative Impact Slight Beneficial
4.9 Appraisal Summary Table
4.9.1 The quantitative and qualitative assessments of impacts made above have been
summarised in the Appraisal Summary Table (AST) provided in Table 4.4.
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Table 4.4: Appraisal Summary Table
Appraisal Summary Table 09/08/2017
Summary of key impacts
Reliability impact on Business users Train travel generally considered more reliable than road travel.
Regeneration Improved access to Thanet w ill assist in attracting new businesses and existing businesses in attracting investment. It w ill help facilitate new housing w ithin the
district and provide improved access to the rail netw ork.
Wider Impacts Improved access to Thanet Parkw ay w ill improve access to the labour pool for employers in the area. This w ill improve business competitiveness by increasing
access to skilled labour and reducing barriers to investment.
Noise Potential for operational noise including changes in train braking and acceleration patterns to affect existing residential dw ellings. The closest residential dw ellings
are located approximately 50m aw ay and are already affected by rail noise. The proposed Station is not expected to result in signif icant adverse impacts on these
dw ellings. Small amount of noise reduction due to decrease in longer distance car travel.
Air Quality Benefit from reduction in road journeys insignif icant and changes in vehicle f low s on individual links w ould be less than DMRB HA207/07 air quality screening
criteria.
Landscape The station is adjacent to the existing railw ay and recently completed highw ay infrastructure. No further signif icant detriment likely.
Tow nscape Thanet Parkw ay w ill be in reasonably close proximity to the built up area of Clifsend but is on the opposite side of the exisitng railw ay line to residential properties.
Historic Environment No notable impact in addition to those arising from the recently completed highw ays scheme (EKA).
Biodiversity Impact on local biodiversity is considered limited. Minor adverse impacts on ecological habitats such as w ildlife links w hich w ill be mitigated by minimising the
severance of w ildlife links at the detailed design stage.
Water Environment The impact of the scheme on the w ater envionment has not been assessed.
Reliability impact on Commuting and Other users Train travel is more reliable than road travel and this is likely to bring about some mode shift from the private car.
Physical activity With modal shift from car to rail some physical activity benefits w ould be expected from rail users w alking or cycling to and from the rail station at both ends of
their journey. This w ill in turn deliver health benefits w hich have not been assessed quantitatively.
Journey quality Journey quality w ill be improved as a result of mode shift from car or bus. Driver and passenger stress w ill be reduced as a result of improved reliability and
travelling environment
Accidents Rail is an inherently safer mode of travel than car. Overall there w ill be a small reduction in accidents as a result of modal shift from car to rail.
Security The station w ill include CCTV and other standard security features. These w ill be of benefit to rail users but w ill offer no change to non users.
Access to services Some improvement in access to services through additional mode choice available but no proposed changes to public trnaport services.
Affordability The impact of the scheme on affordability w ill be small and has not been assessed.
Severance Station w ill not add to severence w hich already arising from the presence of railw ay.
Option and non-use values Provision of a station at this location improves options for travel for some, but does not substantially change the availability of services in the study area.
Cost to Broad Transport Budget There is a capital cost. How ever, there is no subsidy requirement and the station has the potential to generate a substantial revenue surplus and premium
payments to the public sector. If included these premiums w ould deliver a negative cost to the transport budget.
Indirect Tax Revenues Negative impact due to mode shift from car to rail leading to reduction in fuel revenues. Assessed as part of External Marginal Cost Assessment undertaken as per
WebTAG A5-4.
Date produced:
Name of scheme: Thanet Parkway Station
Description of scheme: New Parkway Rail Station located to the west of Ramsgate
Impacts Assessment
Quantitative Qualitative
Eco
no
my Business users & transport providers Assessed in conjunction w ith Commuting and Other users Value of journey time changes(£)
Beneficial
Net journey time changes (£)
0 to 2min 2 to 5min > 5min
N/A N/A N/A
Greenhouse gases There w ould be a small benefit as a result of mode shift from car to rail. Assessed as part of Marginal External Cost Assessment undertaken as per WebTAG
A5.4.
Change in non-traded carbon over 60y (CO2e)Slight Beneficial
No quantitative assessment undertaken
No quantitative assessment undertaken Slight Beneficial
No quantitative assessment undertaken Beneficial
No quantitative assessment undertaken
Change in traded carbon over 60y (CO2e)
No quantitative assessment undertaken Neutral
No quantitative assessment undertaken Neutral
En
vir
on
men
tal
Partially assessed using Marginal External Cost (MEC) Guidance in WebTAG
Slight Adverse for
residents near rail line
Slight Beneficial for
highw ay
Partially assessed using MEC Guidance Slight Beneficial
Neutral
No quantitative assessment undertaken Slight Adverse
Not assessed
So
cia
l Commuting and Other users Users w ill benefit from savings in generalised cost as a result of decreased journey times. Value of journey time changes(£)
BeneficialNet journey time changes (£)
0 to 2min 2 to 5min > 5min
N/A N/A N/A
No quantitative assessment undertaken Slight Beneficial
No quantitative assessment undertaken Slight Beneficial
No quantitative assessment undertaken Beneficial
Neutral
Accident benefits assessed as part of MEC Slight Beneficial
No quantitative assessment undertaken Neutral
No quantitative assessment undertaken Slight Beneficial
Pu
bli
c
Acco
un
ts Capital cost of £21.49m
Operating cost of £3.34m
Revenue of £31.57m
Large Beneficial
Indirect tax of £2.068m over 60-year Appraisal period included in MEC Slight Adverse
No quantitative assessment undertaken
No quantitative assessment undertaken Neutral
No quantitative assessment undertaken
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4.10 Value for Money Statement
4.10.1 The VfM has been prepared in accordance with the ‘Value for money assessment: advice
note for local transport decision makers’ (DfT 2013) and ‘Value for Money Framework:
Moving Britain Ahead’ (DfT 2017). The VfM assessment is summarised in Table 4.5.
Table 4.5: Value for Money Summary
Assessment Note
Initial NPV NPV £22,342,000
(Very High cost
saving and
Financially Positive)
Estimated using WebTAG guidance and
cost saving categories as documented
in ‘Value for Money Framework:
Moving Britain Ahead’ (DfT 2017).
Adjusted NPV NPV £22,342,000
(Very High cost
saving and
Financially Positive)
No adjustment was made
Qualitative Assessment Slight Beneficial Slight benefits expected from reliability
and journey quality
Key Risks, Sensitivities Risks and
sensitivities are
summarised in the
VfM
Possible risks around passenger
demand and revenue forecasts. High
and low growth scenarios assessed to
reflect potential range of demand. Both
scenarios indicate financially positive
NPV and positive NPV/k.
Possible risks around car park revenue.
NPV/k without car park revenue still
indicates a positive return on
investment.
VfM Category High Qualitative assessment indicates
potential slight benefits to contribute to
the overall VfM which remains
financially positive.
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4.10.2 The VfM is based on the quantified initial NPV for the scheme of £22,342,000 and NPV/k
of £1.04 (i.e. Very High cost saving and financially positive) for the medium growth
scenario. The initial NPV is based on an estimated 18% optimism bias and a 15%
allowance for risk and contingency. No additional adjustments were made to the
monetised input used for the quantified NPV value. The qualitative assessments indicate
an overall slight beneficial impact. The outcomes of the qualitative assessments were
taken into consideration for the final VfM which remains financially positive.
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5 Financial Case
5.1 Introduction
5.1.1 This section presents the Financial Case for the Thanet Parkway Station scheme. It
concentrates on the affordability of the proposal, its funding arrangements and technical
accounting issues. The total outturn costs and expenditure profile are presented, along
with an assessment of the impact on public accounts.
5.1.2 The Financial Case for the Thanet Parkway Station is based on significant scheme
development and the identification and costing of the preferred option. The proposed
funding arrangements are set out and described.
5.1.3 Once the project is complete, the car park is to be retained in the ownership of KCC to
be operated directly or via a contracting arrangement. The station itself will be
transferred into the ownership of Network Rail. The funding for the eventual replacement
of the station, and maintenance the tracks and the level crossings (and all railway
infrastructure) will therefore be covered in the ongoing grant asset base grant that
Network Rail receives from Government. Therefore, all costs are incurred by the public
sector. The ongoing maintenance of the station will be covered by the TOC as part of
their Station Lease agreement.
5.1.4 A detailed scheme cost estimate and assumed expenditure profile is provided in
Appendix F completed in 2016. This estimate has been reviewed since 2016 by Allen
Dadswell, including a revised cost estimate for the highway works (following the
agreement of a suitable design) and the uprating for inflation of other elements of the
scheme. Network Rail also completed a preliminary cost estimate for the station based
on the GRIP 3 outputs prior to the commencement of GRIP 4 design. Combining these
reviewed estimates has produced the total cost estimate of £27.65m (including the
requirement to upgrade the Cliffsend level crossing). These recent figures include
inflation to account for delay encountered to date.
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5.1.5 The project is currently at GRIP stage 4, which broadly correlates to outline design but
is in effect more advanced than that as it will lock-down the design and produce a robust
cost estimate. The need to ensure the level crossing requirements are fully understood
means that a separate process is underway within GRIP 4 to make recommendations for
the course of action and seek approval from the asset owner within Network Rail. This
must be concluded before a cost estimate can be issued. There has also been a
requirement to consider redesign options to value engineer the project and ensure its
acceptability in planning terms. The GRIP 3 design and estimate that has received
Approval in Principle has ensured that the station is feasible in this location. However,
GRIP 4 will produce track design, more appropriate construction methodologies,
alternative construction materials and all the other benefits of Early Contractor
Involvement.
5.1.6 GRIP 4 is expected to complete in April 2019 with a cost estimate produce by June 2019.
The cost estimate produced will have been reviewed and validated by Network Rail and
so shall be reliable. The design will have been locked down and therefore scope for
additional cost is greatly reduced and covered by the risk allowance within the estimate.
5.1.7 In the same timeframe, the highway design will have a reliable cost estimate produced
by Allen Dadswell (cost consultants). We also expect to seek a quote for archaeological
works required on the site.
5.2 Base Costs
5.2.1 Table 5.1 shows that the base cost estimate for the scheme is £17,571,770. The cost
estimate was developed in 2016 by cost consultants Gleeds who are experienced in rail
scheme cost estimation. The combined Network Rail and Allen Daddswell cost estimate
has shown that this base cost (2018/Q1) is now £13,935,980. Administration,
management, planning and land costs are £9,611,887 (2018/Q1). This category in the
Gleeds and updated cost estimates includes £3.25m for the possible level crossing
replacements.
Table 5.1: Components of Investment Cost (2018/Q1)
Cost Category £
Construction Costs 13,935,980
Administration, Management, Planning and Land Costs 9,611,887
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Cost Category £
Total 23,547,867
5.3 Inflation
5.3.1 Inflation has been applied to capital costs at 6.0%, based upon the Royal Institute of
Chartered Surveyors (RICS) Building Cost Information Services (BCIS) Tender Forecast
Index. The total allowance for inflation is estimated to be £1,212,452. Since the Gleeds
estimate, project timescales have necessarily slipped and consequently the project has
been exposed to further inflation at a higher rate. Both the Network Rail and Allen
Dadswell cost estimates have allowed for inflation to 2020, totalling £1,177,176.
5.4 Risk Budget
5.4.1 A Quantified Risk Assessment (QRA) has been undertaken by Gleeds and a quantitative
risk register has been developed for the scheme contained in Appendix G. The total
risk identified in the risk assessment amounted to £2.4m. For the purposes of a robust
assessment the KCC cost estimate allows for a 15% risk allowance which amounts to a
total of £2,635,766. The updated cost estimate by Allen Daddswell maintained risk at
15%, and Network Rail applied a further absolute amount of risk to their part of the
estimate. This totals £2,924,957.
5.5 Optimism Bias
5.5.1 Optimism bias refers to the tendency for scheme promoters to be overly optimistic about
scheme costs. Optimism bias has been applied in accordance with WebTAG Unit A5.3,
Rail Appraisal (DfT May 2018). For the purpose of this business case it has been assumed
that the scheme is at project development level 4. In this instance an optimism bias of
9% has been applied with a sensitivity test of 18% at level 3 to the construction costs
and 1% per annum has been applied to the operation costs.
5.6 Final Scheme Costs
5.6.1 Table 5.2 indicates the costs associated with the proposed scheme including inflation
and risk allowance.
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Table 5.2: Summary of Final Scheme Costs (2016/Q2 prices)
Cost Type Gleeds 2016/Q2 prices £
Network Rail/ Allen
Dadswell 2018/Q1 prices
£
Scheme Cost 17,571,770 23,547,867
Inflation 1,212,452 1,177,176
Risk Allowance 2,635,766 2,924,957
Total 21,419,988 27,650,000
5.6.2 As explained previously, this cost estimate is still under review and new estimates for
the highways works and the railway works are under production as part of outline design
and the GRIP 4 process, respectively. Once these are completed (June 2019) then the
project will have a new and robust cost estimate that fully reflects design amendments
made since GRIP 3.
5.7 Funding Arrangements
5.7.1 Thanet Parkway Station is one of a number of pipeline schemes planned to be delivered
by KCC as part of the South East Local Enterprise Partnership (SELEP) Growth Deal
agreed between SELEP and Government in July 2014. This included an allocation of
£10.0 million for the Thanet Parkway scheme.
5.7.2 The project has experienced a gap between allocated funding and total project costs for
a number of years. Therefore, KCC bid to DfT and Network Rail for additional funding
through the New Stations Fund 2 (NSF2). After this was unsuccessful, KCC has continued
to investigate alternative funding sources for gap that remains between allocated and
provisionally allocated funding and total scheme cost (up to £15m, which includes an
allowance of £3.25m for level crossing upgrades). Feedback from the DfT on the NSF2
bid indicated that the station has a strong ‘financially positive’ business case and should
therefore be able to attract interest from the private sector.
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5.7.3 On the advice of the DfT, KCC met with the three franchise bidders to determine if they
would be able to make a contribution to the station as they would receive the revenue
increase from the new passengers. These discussions were subject to Non-Disclosure
Agreements (NDA) and therefore no further detail can be given. The winning franchise
bidder was expected to be announced in November 2018, but the current franchise has
now been extended to June 2019 and an announcement date is awaited. In addition to
this, KCC has also met with private investment companies who may wish to invest in the
rail network. The latest discussions are still underway but if successful could fill the
funding gap.
5.7.4 KCC has also explored further public sector options, as has Thanet District Council. This
includes a bid for further LGF through the LGF 3b available funding, which this business
case supports. Thanet District Council have now committed £2m towards the project,
and successfully bid for £700k from the East Kent Spatial Development Company. This
is a loan direct to Thanet District Council, which KCC and the scheme are not liable for
(it would be repaid through the economic benefits the project will deliver). KCC has also
investigated the possibility of a loan based on the car park income, which could support
any additional KCC capital to complete the funding package. A grant agreement is
currently being drafted between Thanet District Council and KCC for the £2m.
5.7.5 The increase on the previously reported funding gap (£8.8m and now £15m without
any of the funding options described in 5.7.2 – 5.7.4) is based on a robust worst-case
cost estimate derived from the GRIP 3 feasibility work by Network Rail (station) and
Allen Dadswell (car park and junction). Work has since been split during GRIP 4
(outline design) so that Network Rail will design the car park and station, including
addressing potential planning conditions in the design and exploring options to value
engineer the project, and KCC undertakes the junction design. This will result in a
refined cost estimate in June 2019. The potential level crossing requirements have also
been explored and consequently the £3.25m allowance has been retained in total
project costs. The signalling costs will be explored fully during GRIP 4 and will quantify
what financial contribution from this project is required
5.7.6 KCC are contributing £2.65 million towards the project. This has been identified and
allocated within KCC’s Medium Term Financial Plan. A further £4.3m has also been
allocated in KCC’s Capital Investment Plan as agreed at County Council Budget meeting
on 14 February 2019.
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5.7.7 Inflation has been applied to the highways works using the BCIS All-In Tender Price
Indices. Network Rail have applied inflation to the station works using their own indices.
Both use estimate base of 1Q18. Highways is escalated to April 2020 and the station
assumes midpoint of construction is at 3Q19. However, these will be reviewed as part
of the new cost estimation in June 2019. A total of £30,000 of revenue has been allocated
for monitoring and evaluation to be spent in 18/19, 2021/22 and 26/27.
5.7.8 Once funding is secured, spending will be able to commence at pace with long lead
procurement items being bought and stored, such as the lifts (which are of a standard
design). Now that Thanet District Council and the East Kent Spatial Development
Company have committed funding (see paragraph 5.7.4), this (and any additional KCC
funding) could be used at the end of the programme so that the LGF is spent first. This
also provides assurance that LGF will be spent within the 2021 time period if anything
causes the programme to slip. The spend profile, and assurances from Network Rail,
show that the full LGF contribution can be spent within the deadline of March 2021 for
the LGF (Table 5-3). Only the LGF has a funding constraint of March 2021, the other
sources of funding are not constrained by time or other factors.
Table 5.3: Expenditure Forecast
Expenditure Forecast
Cost type Up to
17/18
£000
18/19
£000
19/20
£000
20/21
£000
21/22
£000
Total
£000
KCC Capital
(initial)
940 400 1310 2650
LEP Funding 10000 10000
LGF 3b 4000 4000
Thanet DC
contribution
2000 2000
EKSDC
contribution
700 700
KCC Capital
(allocated Feb19)
2673 1627 4300
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Expenditure Forecast
KCC Capital
(underwritten)*
576 1613 1811 4000
Total 940 400 11259 13240 1811 27650
*see section 5.9.1
5.7.9 KCC will continue to keep SELEP informed of progress with project cost refinement and
additional funding contributions.
5.7.10 In the event of an underspend, this would be returned to each party funding the project
in proportion to their initial contribution.
5.8 Whole Life Costs
5.8.1 The station will be handed to Network Rail and leased to the Train Operating Company.
Annual operating costs are forecast to be £133,000 at opening year for the station and
£79,500 for the car park.
5.8.2 The annual station operating costs per year for a 60 year asset life at Q4 2015 prices
are broken down in Table 5-4.
Table 5.4: Estimated Annual Station Operating Costs
Element Annual Cost
Station – long term charge £78,000
Utilities £8,000
Maintenance £20,000
Retail Systems £17,000
Telecoms £10,000
TOTAL £133,000
5.8.3 In year 1 newly generated fares are expected to be £578,000 (discounted) and will
therefore outweigh the operating costs. For fare revenue, the operating surplus will be
retained by the Train Operating Company within the terms of their agreement with the
DfT.
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5.8.4 KCC will maintain control of the car park. Car park costs for a 60 year asset life at Q4
2015 prices are broken down in Table 5-5.
Table 5.5: Estimated Annual Car Park Operating Costs
Element Annual Cost
Utilities – car park £2,000
Car park enforcement £67,500
Maintenance – car park £10,800
TOTAL £79,500
5.8.5 In year 1 car park income equates to £168,000 (discounted). The operating surplus has
been shown by KCC Capital Finance to be sufficient to borrow a contribution towards
capital costs, as part of any additional KCC contribution.
5.9 Accounting Implications
5.9.1 The following implications on public accounts are expected:
• Devolved LEP funding of £10.0m (36%) of the scheme costs are requested, with
expenditure starting in the 2018/19 financial year;
• A contribution of £4.0m further LGF funding (14.5%);
• A KCC contribution of £2.65m (10%);
• A Thanet District Council contribution of £2.0m (7%);
• An East Kent Spatial Development Company contribution of £0.7m (2.5%);
• This leaves a funding gap of £8.3m , which KCC has committed a further 4.3m
(16%) in its Capital Investment Plan agreed at County Council Budget Meeting on
14 February 2019 and will seek to underwrite the remaining 4.0m (14%) (this
would include a potential loan on the car parking income and/or Business Rates
retention). The amount of underwriting required is likely to reduce as recent
(March 2019) Quantity Surveying (QS) work has indicated a potential £2m
reduction to the current cost estimate from further efficiencies and value
engineering of the car park design.
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6 Commercial Case
6.1 Introduction
6.1.1 The Commercial Case for the Thanet Parkway Station scheme provides evidence that
the proposed investment can be procured, implemented and operated in a viable and
sustainable way. Adopting a commercial approach to the project is fundamental to
determining that KCC gets the best deal from the market.
6.1.2 This chapter defines the current progress of the commercial aspects requirements. Areas
this chapter considers include:
• Output Based Specification;
• Procurement Options;
• Procurement Strategy;
• Payment Mechanisms;
• Pricing Framework and Charging Mechanisms;
• Potential for Risk Transfer;
• Contract Length; and
• Contract Management.
6.2 Outcome Based Specification
6.2.1 The outcomes which the procurement strategy must deliver are to:
• Achieve cost certainty, or certainty that the scheme can be delivered within the
available funding constraints;
• Minimise further preparation costs with respect to scheme design by ensuring best
value, and appropriate quality;
• Obtain contractor experience and input to the construction programme to ensure
the implementation programme is robust and achievable; and
• Obtain contractor input to risk management and appraisals, including mitigation
measures, to capitalise at an early stage on opportunities to reduce construction
risk and improve out-turn certainty thereby reducing risks to a level that is ‘As Low
As Reasonably Practicable’.
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6.2.2 The Output Based Specification for the Thanet Parkway Station scheme has yet to be
developed, this is to be expected at this stage for the following reasons:
• The need to secure funding approval for the preferred scheme prior to undertaking
this significant piece of work;
• The detailed design components have not commenced; and
• The tendering process is not due to start until 2019.
6.2.3 Typically, KCC will use either experienced in-house resources or external consultants,
who have been involved in other recent rail projects, to develop the specifications.
6.3 Procurement Options
6.3.1 The project has two distinct elements: (1) highways works and footway/cycleway; and
(2) station/car park. These can be delivered separately with the highways works in
advance of the station works.
6.3.2 KCC has experience of delivering significant transport and infrastructure projects.
Previously the Authority has normally followed a more traditional procurement route on
its transport schemes where the design team is appointed to carry out detailed design
first followed by the procurement of a contractor by competitive tendering. Given this
experience, the highways works will be retained in-house by the Major Capital
Programme Team.
6.3.3 In addition, rail industry systemic risk needs to be considered, hence, in order to mitigate
the risk of issues occurring on the Thanet Parkway scheme, KCC has considered
alternative procurement options. This has led to a recommendation to directly procure
the services of Network Rail for GRIP stages 5 – 8 (detailed design through to the station
entering into use. This recommendation will be taken through internal KCC procurement
processes before a contract is entered into.
6.4 Procurement Strategy
6.4.1 In 2014 KCC competitively procured two contracts (GRIP Stage 2 & 3 to achieve Approval
in Principal (AiP), and Planning Services) using the Homes and Communities Agency
(HCA) Framework.
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6.4.2 The HCA maintains a number of technical framework panels to help with the delivery of
its programmes. These panels are available for use free of charge by a number of other
public sector bodies. The panels have been procured through fully compliant Official
Journal of the European Union (OJEU) processes, and offer a quick and efficient means
to procure high quality, good value development related technical services, such as
property and project management, engineering, planning, and multidisciplinary services.
6.4.3 At the same time as the above procurement exercise, and being aware of the
complexities of Network Rail processes, KCC conducted a separate procurement exercise
for specialist rail advisory services. In late 2014 Currie & Brown (formerly Sweett Group)
were appointed to act as a ‘critical friend’ providing consultancy services to support the
project team.
6.4.4 Subsequently KCC have utilised the West Sussex County Council Framework to procure
outline design services for the highways works. Network Rail have also been directly
commissioned to conclude the GRIP 4 design, which broadly corresponds to outline
status and will substantially de-risk the project.
6.4.5 The current project programme allows for the recommended procurement strategy.
6.4.6 For the highway works, it is expected one of the frameworks available to KCC (such as
the West Sussex County Council framework, or the forthcoming KCC-specific framework,
or similar) would be used to procure a detailed design and build contract (D&B). Such a
framework is OJEU compliant and so this approach minimises the resource required to
manage the lengthy OJEU process directly, saving both time and money. ESPO is a
multidisciplinary panel providing a broad range of engineering disciplines covering
feasibility, design, construction and maintenance, including highways and other
infrastructure.
6.4.7 For the station/car park works, contractors are often engaged on a D&B basis at either
commencement of GRIP 4 (single option development) or GRIP 5 (detailed design).
These stages are sufficiently early in the design process to allow the contractor to use
their expertise to influence the design. This approach has been adopted by Network Rail
in the GRIP 4 design, with contractor BAM Nuttall engaged in the GRIP 4 development.
This is allowing a firm design brief for GRIP 5 to be developed and confidence in the
outputs from the GRIP 4 design.
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6.4.8 This is maximising KCC’s control of the design requirements and outputs while at the
same time exploiting the contractor’s design and construction expertise, which is already
identifying potential methods to value engineer the project.
6.4.9 For detailed design and build (GRIP 5 – 8), the same arrangement as for GRIP 4 will be
the recommended procurement strategy owing to the many advantages already
experienced in GRIP 4, primarily owing to Network Rail’s role as the asset owner. It
should be noted that by directly commissioning Network Rail to complete GRIP 5 – 8,
they will manage their own assurance processes internally to ensure that the new and
existing assets are properly protected and that the design, or works, will not adversely
impact upon their ability to safely operate and maintain the railway or put at risk their
ability to meet their obligations to Train Operating Companies or other rail users.
6.4.10 During the highways works, KCC will work within the Lane Rental Scheme to minimise
disruption to the travelling public. Likewise, KCC will work with Network Rail to mitigate
passenger disruption when the railway line possessions are required.
6.4.11 This procurement route has been successfully utilised for the Ashford Spurs project,
which is similarly funded by LGF. For Ashford Spurs, KCC is the client for the project. By
entering into a Development Services Agreement (GRIP 4) and subsequently
Implementation Agreement (GRIP 5 – 8) the same benefits are achieved as for Ashford
Spurs, namely: a cap on the financial obligation, the appointment of Network Rail as
construction manager and KCC as promoter (ensuring expertise and responsibility are
aligned), and assurance through the Network Rail review panels to guarantee acceptance
of the final station. KCC has used this procurement method also for the Sandwich Station
platform extensions for the Open Golf, and therefore has reasonable experience of the
process.
6.5 Payment Mechanisms
6.5.1 Payment timing will be adopted to maximise the value from the highways works contract
through minimising financing and construction costs. Prompt and fair payment
mechanisms will be applied throughout the supply chain. This is covered under the
procurement process and will be monitored during the contract to ensure full value is
delivered.
6.5.2 The contract with Network Rail will likely be an Implementation Services Agreement,
which will be negotiated via KCC’s legal representatives to ensure that all terms are
agreeable to both parties and ensures a fair price and good standard of service delivery.
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6.6 Pricing Framework and Charging Mechanisms
6.6.1 Under the preferred procurement approach Network Rail will provide the Thanet Parkway
Station works described in the contract for a lump sum cost. The contract will provide
for specified risks to be carried by the Employer which will result in the lump sum being
adjusted if any compensation events occur. A similar approach will be used for the
highways works.
6.7 Potential for Risk Transfer
6.7.1 Although many of the design risks can only be resolved through rigorous design and
review processes, once the design options are clear and the scope of land acquisition,
planning requirements, environmental requirements are fully identified; the primary risks
will be related to construction. There is potential for transferring these risks through the
construction procurement process. This will be explored fully as the design and
procurement process progresses.
6.7.2 The allocation of risk will be determined at the stage when the tender specifications are
drawn up to best achieve the aims of the project and deliver value for money.
6.8 Contract Length
6.8.1 It is envisaged that the contract for highways works will be of approximately 18 months
duration with an anticipated construction start date in January 2020. The stations works
contract is expected to be approximately 24 months duration and start around autumn
2019, allowing for design and build. These dates are subject to confirmation of
programme from Network Rail.
6.9 Contract Management
6.9.1 For both contracts, KCC will meet with the contractor on a monthly basis throughout the
construction period, or more frequently if this is deemed necessary by the Project
Manager. The contractor will be contractually obliged to provide monthly progress and
financial updates to KCC, which will include updates to the project programme.
6.10 Securing Rail Services
6.10.1 The Invitation to Tender for the new South Eastern franchise includes specific reference
to Thanet Parkway in the ‘franchise specific obligations’ such that the new operator will
be required to serve the station once it is built, extract as follows:
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“2. Specified Projects
2.1 The Franchisee shall co-operate in good faith from the Start Date until the
completion of any new station at Thanet Parkway with all relevant parties responsible
for the delivery of such new station with the intention of assisting its timely, efficient
and cost effective completion.
2.2 To the extent that the development of a new station at Thanet Parkway leads to the
Franchisee having rights under railway industry procedures including Network Change or
Station Change the Franchisee shall not act in a way designed directly or indirectly to
prevent, prejudice or frustrate the delivery of such new station and shall not
unreasonably raise any objection under any railway industry procedure including
Network Change or Station Change.
2.3 The Franchisee shall provide such information in respect of any new station at
Thanet Parkway as the Secretary of State may reasonably request from time to time.
2.4 If the new station at Thanet Parkway is completed before the Expiry Date, the
Franchisee shall:
(a) make provision for the Passenger Services to stop at such new stations; and
(b) if so required by the Secretary of State:
(i) surrender the Station Lease for Thanet Parkway Station;
(ii) enter into a Station Lease in respect of each such new station, both in such forms to
be approved by the Secretary of State (and the Secretary of State shall require that such
Station Leases contain full repairing and insuring obligations in respect of such stations
and a duration specified by the Secretary of State).”
6.10.2 This compels the new franchisee to serve the station and guarantees that train services
will commence in the scheduled timetable change following project completion.
Timetable changes occur in May and December each year.
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7 Management Case
7.1 Introduction
7.1.1 The purpose of the Management Case is to outline how the proposed scheme and its
intended outcomes will be delivered successfully. It gives assurances that the scheme
content, programme, resources, impacts, problems, affected groups and decision
makers, will all be handled appropriately, to ensure that the scheme is ultimately
successful.
7.2 Evidence of Similar Project Delivery
7.2.1 KCC has a successful track record of delivering major transport schemes across the
county. The East Kent Access Phase 2 (EKA2) is a successfully managed and delivered
scheme in the district of Thanet.
7.2.2 The EKA2 scheme, completed in May 2012, was designed to support economic
development, job creation and social regeneration, improving access with high quality
connections between the urban centres, transport hubs and development sites in East
Kent. The overall objectives of the scheme were to unlock the development potential of
the area, attract inward investment and maximise job opportunities for local people. The
extent of the scheme is shown in Figure 7-1 overleaf.
7.2.3 The scheme was successfully delivered within budget and ahead of programme through
the adoption of a robust management approach. The total value of the scheme was
£87.0m of which £81.25m was funded by Central Government.
7.2.4 The intended scheme outcomes are currently being monitored but the intended benefits
of the scheme are anticipated to be realised. Figure 7-1 indicates the scheme extent and
layout.
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Figure 7-1: EKA2 Scheme Layout
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7.2.5 The EKA2 scheme has since been awarded regional Institute of Civil Engineers (ICE)
Excellence Awards.
7.3 Project Programme
7.3.1 This section summarises the key milestones and assumptions within the Thanet Parkway
Project Programme at GRIP Stage 3. The programme for construction will be further
developed during GRIP Stage 4 Outline Design and also Stage 5 Detailed Design. The
key milestones and their expected start and finish dates are listed in Table 7.1 based on
an update of the programme in January 2018 and a subsequent proposed programme
at the start of GRIP 4 by Network Rail.
Key Milestones
Table 7.1: Key Project Programme
ID Task Name Start Finish % Complete
1 Key Milestones
2 GRIP 2 Sign Off 08/11/14 08/11/14 100%
3 GRIP 3 Sign Off 17/08/17 17/08/17 100%
4 GRIP 4 Sign Off 14/10/18 05/06/19 0%
5 Planning Application
Submission 31/05/18 31/07/19 100%
6 Land Acquisition Complete 31/12/18 30/11/19 0%
7 GRIP 5 Sign Off 02/07/19 31/07/20 0%
8 GRIP 6 Advanced works 01/10/19 01/11/19 0%
9 GRIP 6 Implementation 01/09/20 01/09/21 0%
12 GRIP 7 Project Hand Back 02/09/21 30/11/21 0%
13 Station Open 12/12/21 12/12/21 0%
14 GRIP 8 Project Close Out 02/05/21 02/05/22 0%
7.3.2 Appendix H contains details of the programme.
Station Opening Date
7.3.3 Based on the programme updated in January 2018 and subsequently reviewed by
Network Rail, , given the possibility of delays during construction (for example, Network
Rail may have cause to cancel disruptive possessions at short notice if necessary) and
to coincide with the new timetable, it is considered realistic that the station would be
open by 12th December 2021 at the latest. This will ensure there is contingency time
available to the programme.
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Operation and maintenance responsibilities
7.3.4 The station will be open to the public in December 2021 coinciding with the second
timetable change of the year. Maintenance responsibilities will then sit with the TOC with
defects residing with the main contractor until the completion of the defects liability
period a year following construction.
7.4 Project Dependencies
7.4.1 The scheme programme is reliant on achieving the following key dependencies:
JTI Scheme
7.4.2 The single most critical dependency is the completion of the JTI scheme, which is
scheduled for the December 2021 timetable change so is aligned to project completion.
Signalling
7.4.3 Depending on the nature of works involved, signalling design and construction activities
have the potential to be complicated and time consuming. The current Thanet Parkway
Programme (TPP) logic assumes that only straight-forward works are required (for
example signal sighting, the design & placement of Car Stop Markers or the short
distance relocation of a signal in order to accommodate the new station platforms).
7.4.4 Network Rail commissioned an independent risk assessment for the two-level crossings
(Cliffsend and Sevenscore) to confirm alongside the GRIP 4 design if any upgrade is
required, or if suitable mitigation can be implemented. A risk assessment workshop took
place in December 2018 with KCC, Network Rail and Southeastern in attendance. The
initial recommendations have been to upgrade Cliffsend level crossing and make data
changes to the Sevenscore level crossing controller. Consequently, £3.25m has been
allowed in the maximum budget to cover this possibility. The level crossing element of
the project can be run concurrently with the main station works and is expected to take
a similar timescale. Therefore, there is no programme impact.
Land Acquisition
7.4.5 Ownership of the land is only required to be secured by the point at which a GRIP 5-8
Design & Build contract is awarded. If land is purchased but then for some reason the
project is abandoned prior to GRIP 5-8 then this creates a liability for subsequent land
disposal. The land purchase will also be tied to the planning permission for this reason.
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7.5 Governance, Organisation Structure, Roles and Assurance
7.5.1 Kent County Council (KCC) will take overall responsibility for development and delivery
of the project, but with input from stakeholders such as Network Rail, Southeastern (and
subsequently the new TOC) and Thanet District Council. KCC will also commission
specialist consultants to assist where necessary.
7.5.2 PRINCE 2 Project Management methodologies will be applied to project delivery, giving
full attention to the whole spectrum of activities from overall project strategy and
objectives through to the detailed management and control of work stream activity.
7.5.3 In order to ensure the consistent progression of the project and achieve the necessary
approvals, the Network Rail GRIP stages will be adhered to. This will involve sign off
from Network Rail at each stage of the process, therefore ensuring the project is
completed as fit for purpose.
7.5.4 Further to this, KCC has previously utilised a specialist Rail Advisor in the project team
to ensure the smooth progression through the GRIP process. Since the completion of
GRIP 3, KCC has reviewed the procurement plan and determined that the most efficient
and effective way to deliver the whole project is to separate the highways works (new
junction and footway/cycleway link) from the station elements (car park and station
building). This enables the use of more specialised sub project teams and drives
efficiencies by being able to appoint appropriate contractors. Table 7.2 shows the
resources per GRIP stage.
Table 7.2: Resource Plan per GRIP Stage
Resource Company GRIP
3 GRIP
4 GRIP
5 GRIP
6 GRIP
7 GRIP
8
Project Manager
KCC Y Y Y Y Y Y
Quantity Surveyor
KCC Y Y Y Y Y Y
Rail Advisor
Currie & Brown/ Others as appropriate
Y Y Y Y Y Y
Legal Services
Invicta Law (formerly KCC Legal Services)
Y Y Y N Y N
Estates Surveyor
KCC Y Y Y Y Y Y
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Planning Consultants
AECOM Y Y N N N N
Outline Design Consultants
AECOM Y N N N N N
D&B Contractor (rail)
TBC N N Y Y Y Y
NR Enhancements Team
Network Rail
N Y Y Y Y Y
NR ASPRO Network Rail
Y N N N N N
NR Property Network Rail
N Y Y Y N Y
Outline Design Consultants
WSP N Y N N N N
D&B Contractor (highways)
TBC N N Y Y Y Y
7.5.5 A full resource plan will be produced at the next GRIP stage and a full project governance
plan and role descriptions can be found Appendix I.
7.5.6 KCC have set up a clear and robust structure to provide accountability and an effectual
decision-making process for the management of LEP funded schemes. The designated
project manager for the Thanet Parkway scheme will form part of this governance
structure to ensure internal processes and SELEP requirements are satisfied.
7.5.7 Figure 7-2 provides an outline of the overall KCC governance structure implemented to
manage the delivery of each scheme.
7.5.8 A detailed breakdown of the KCC specific meetings (along with the attendees, scope and
output of each) which make up the established governance process is set out below.
Project Steering Group (PSG) Meetings
7.5.9 PSG meetings are held fortnightly, or as often as required, to discuss individual progress
on each scheme and are chaired by KCC Project Managers (PMs). Attendees include
representatives from each stage of the LEP scheme (i.e. KCC Bid Team, KCC sponsor,
KCC PMs, Amey design team and construction manager). Progress is discussed in
technical detail raising any issues or concerns for all to action. A progress report, minutes
of meeting and an update on programme dates are provided ahead of the Programme
Board (PB) meeting for collation and production of the Highlight Report.
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Highlight Report
7.5.10 The Progress Reports sent by the KCC PMs comprise of the following updates:
• General progress;
• Project finances;
• Issues; and
• Risks and governance meeting dates.
7.5.11 The Highlight Report identifies any areas of concern or where decisions are required by
the PB meeting or higher to the KCC LEP Programme Manager. An agreed version of
the Highlight Report is issued to the PB meeting attendees during the meeting.
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Figure 7-2: KCC Governance Structure
High level Agenda Frequency Attendees Format Scope Agenda Items Key Deliverables/Feedback Templates
Planning
Design
Construction Post
Scheme Monitoring
Every two months -
Can be called in
emergency if
required
Chair: TR
MW/BC/SJ/KS/CH/TR/S
N
Supported by PB
attendees as required
Face to face meeting
To discuss programme (i.e. high level
progress/preview next steps and
discuss and resolve issues.
LEP programme (high level) progress to date
Programme Financial reporting
Communicatio/Stakeholder Engagement
Issues/Risk/Change
Decisions
Minutes of Meeting
Action List/Decision Log
Output distributed to all
attendees + Programme
Board Attendees where
appropriate
Agenda
Minutes
Decision list
Decisions Needed Every two months LB Report
To record progress/outstanding
actions/issues that require a decision
made by the board
Action list ready for the
Sponsoring GroupProgress Report
Planning
Design
Construction Post
Scheme Monitoring
Bi- Monthly
Chair: LB
LB/KCC PMs/
External Suppliers
Face to face meeting
To discuss progress/preview next
steps and discuss and resolve issues.
Escalate issues/decisions required to
the Sponsoring Group
LEP programme progress to date
Programme financial reporting
Communicatio/Stakeholder Engagement
Issues/Risk/Change
Internal Governance
Minutes of Meeting
Action List
Output distributed to all
attendees + Steering Group
attendees where
appropriate
Agenda
Minutes
Identify key points for
Programme Board
Meeting
Monthly LB Report
To collate and streamline all reports
highlighting areas of interest for the
Programme Board meeting.
Used for Programme Board
Meeting.
Highlight report shared
with PB attendees.
Highlight Report
Progress UpdateMonthly/Fortnightly
as required
Chair: KCC PMs
All input staff - Project
Team/KCC PMs/External
Suppliers
Face to face meeting
Individual meetings per project
(including each stage of the LEP
process to discuss progress in detail).
LEP project progress to date/MS Programme
Project financial reporting
Issues/Risk/Change
Actions
MS Programme Update
Progress update in
template for each project
e.g Risk Register/ Issues Log
Agenda
Minutes
Progress Report
List of Initials:
MW Mike Whiting Cabinet Member Planning, Highways, Transport and Waste
BC Barbara Cooper Corporate Director Growth, Environment and Transport
SJ Simon Jones Director of Highways, Transport and Waste
KS Katie Stewart Director of Environment, Planning and Enforcement,
CH Cath Head Head of Financial Management Strategic and Corporate Services.
TR Tim Read Head of Transportation for Growth, Environment and Transport
SN Sarah Nurden Strategic Programme Manager (KMEP)
LB Lee Burchill Local Growth Fund Programme Manager for Growth, Environment and Transport
KCC LGF Meeting Governance Diagram
Programme Board Meeting
Steering Group Meeting
Highlight Report
Sponsoring Group Progress Report
Sponsoring Group
Local Growth Fund
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Programme Board (PB) Meeting
7.5.12 The PB meeting is held monthly and is chaired by Lee Burchill (KCC LGF Programme
Manager). Attendees include representatives from all three stages of the schemes (i.e.
KCC LEP Management, KCC LEP Bidding, KCC Sponsors, KCC PMs, Amey Account
Manager, Amey Technical Advisors, Amey Construction representatives). This meeting
discusses project progress to date, drilling into detail if there is an issue or action (as
identified in the PSG meeting), financial progress, next steps and actions. Outputs of this
meeting are the Highlight Report and the minutes of meeting.
Escalation Report
7.5.13 A list of actions and decisions that the PB meeting was unable to resolve is prepared
ready for the Sponsoring Group (SG) meeting to discuss and ultimately resolve. These
actions formulate the ‘Escalation Report’.
Sponsoring Group (SG) Meeting
7.5.14 The SG is held monthly and will be chaired by Tim Read (KCC Head of Transportation).
Attendees are Barbara Cooper (Corporate Director), Simon Jones (Director of Highways,
Transportation and Waste), Katie Stewart (Director of Environment, Planning and
Enforcement), Cath Head (Head of Financial Management). This meeting discusses high-
level programme progress to date, financial progress, next steps and closes out any
actions from the escalation report. Output is sent to Lee Burchill for distribution.
Technical advisors and Project Managers are invited if necessary to expand upon an
issue. All actions from the start of this meeting cycle are to be closed out by the SG when
they meet (i.e. no actions roll over to subsequent meetings).
7.6 Assurance and Approvals Plan
7.6.1 The scheme will be managed in line with the 8 GRIP stages outlined in Section 7.5 and
the Project Board will sign off each of these stages and give the go/no go decision to
start the following stage.
7.7 Availability and Suitability of Resources
7.7.1 The project’s sponsoring authority is Kent County Council, and the project sponsor is
Joseph Ratcliffe, Transport Strategy Manager.
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7.7.2 The procurement route chosen for the station and car park is direct procurement of
Network Rail. As discussed in the Commercial Case, this is a tried and tested
methodology employed by Kent County Council for several railway projects. KCC will
oversee the process of delivery by an experienced team of project managers, design
consultants and contractors approved by Network Rail (as the asset owner, they have
the required expertise in railway construction projects).
7.7.3 For the highways works, the same Major Capital Programme Team that delivery all
transport LGF schemes. Therefore, suitable resources are available and committed to
project delivery.
7.8 Communications and Stakeholder Management Plan
Overview
7.8.2 KCC have a tried and tested Communication and Engagement Management Plan which
is used on all major projects. Effective use of the plan has resulted in limited adverse
feedback from the public and ensured successful delivery of schemes both from a project
management and public relations perspective. This section will provide further
information on how stakeholders are identified, how they are communicated to and the
methods/ techniques used to communicate.
7.8.3 The main aim of the Communication and Engagement Plan is to ensure that stakeholders
and members of the general public are kept informed throughout the development and
implementation of a scheme. This can range from keeping key stakeholders updated
with critical information, essential to the successful delivery of the scheme to providing
information to the general public.
Stakeholder Management Plan
7.8.4 Project stakeholders have been identified and mapped into management categories
based on their interests and influence in the project (Table 7.3). A full Stakeholder
Management Plan is in Appendix J.
Table 7.3: Stakeholder Categories
Stakeholder Group
Key Stakeholders
Political Thanet District Council
Dover District Council
Minster Parish Council
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Cliffsend Parish Council
Manston Parish Council
Ramsgate Town Council
Local Members of Parliament
Department for Transport
Environmental Environment Agency
Natural England
English Heritage
Campaign to Protect Rural England
Service Providers Network Rail
Southeastern Railway
Manston Airport Site
Stagecoach South East
Steam Dreams/The Cathedrals Express
Users Local Businesses
Discovery Park Enterprise Zone
Local Residents
Current Rail Users
Land/Property Owners
Kent Residents Residents within the wider county who may use the rail network or visit the area and therefore feel they have an interest in the project.
7.8.5 In 2015 an eight-week consultation was held (2nd February – 27th March) on the initial
high level design, impacts and benefits of Thanet Parkway. The consultation consisted
of a range of communication methods to ensure a broad range of target audiences were
engaged. In addition, seven open consultation events were held across East Kent,
supported by a range of consultation documents. The consultation received a total of
529 responses. The outcome of the consultation has been used to shape the final scheme
design, planning application and Environmental Impact Assessment (EIA) work.
7.8.6 KCC has continued to engage with key stakeholders throughout the development of the
project to gain feedback on the design and EIA work.
7.8.7 A further formal eight-week public consultation was held between 25th January – 19th
March 2017. The aim of this consultation was to gain feedback on the detailed design of
the station. KCC understands the importance of engaging with stakeholders to gain
feedback and has endeavoured to incorporate the views of those with an interest in the
project.
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7.8.8 Alongside this, KCC holds regular Project Board meetings, which are represented by
Thanet District Council, Dover District Council, Southeastern, Network Rail and
Department for Transport.
7.8.9 Although KCC is delivering the project, the importance of engaging with the Train
Operating Company (TOC) and Network Rail throughout is recognised. Currently services
are provided by Southeastern; however, a new franchise is due to be awarded in April
2019. However, KCC continues to work with Southeastern to understand the concerns
and impact on a Train Operating Company. There are currently no freight operating
companies functioning on the existing railway line.
7.8.10 Third parties will be entitled to claim for compensation on the following lines:
• LCA Part 1 - Properties located within close proximity to the station will legally be
entitled to claim for compensation should the project result in depreciation in the
value of residential properties due to impacts of noise, lighting, fumes and non-
visual intrusion. However, it is anticipated that properties within Cliffsend village
will instead experience an increase in property value due to their proximity to rail
services.
• The TOC will also be entitled to claim for compensation should construction works
affect or delay existing services. KCC are continuing to work closely with
Southeastern to understand any potential impacts and identify suitable mitigation
measures. It is also expected for the majority of construction to take place offline
to minimise disruption to passengers.
Stakeholder Support
7.8.11 KCC has had continuous engagement with key stakeholders throughout the project
through project board meetings with both the internal and external project team. Further
regular meetings are also held with Network Rail and Southeastern to discuss project
details to ensure the specification meets the requirements of both stakeholders and
aligns with Network Rails GRIP stages.
7.8.12 Letters from the following, contained in Appendix D, demonstrate support for the
proposed station and timetable, including from:
• Network Rail – Mike Smith (Route Enhancement Manager, South East Route);
• Department for Transport – Andy Smith (Commercial Manager for Southeastern);
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• Southeastern Railway – Diane Burke (Commercial Director for Southeastern
Railway).
Stakeholder Communication Plan
7.8.13 An outline of the proposed communications plan is described below based on similar
major infrastructure projects that KCC has delivered. There has been another phase of
consultation associated with the planning application being published; therefore this
communications strategy concentrates on construction.
Campaign objectives
• To give residents access to clear, timely information about the project;
• To communicate the long-term benefits of the project and how
KCC/contractors/Network Rail are keeping disruption to a minimum;
• To direct people online to find out more information and keep calls to the Contact
Centre to a minimum;
• To manage expectations about disruption on the line (if there is disruption to
services during construction); and
• To inform and manage expectations from residents about disruption during
construction.
Target Audience
• Residents around the new station, particularly Cliffsend;
• Train users from:
o Ramsgate Station;
o Dumpton Park;
o Broadstairs;
o Margate;
o Westgate-on-Sea;
o Minster;
o Sandwich;
• If there are any line closures requiring replacement buses, then increased
targeting of passengers using stations down line;
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• Politicians;
• Local parish and district councils;
• Local action groups;
• Businesses;
• Prospective Thanet Parkway users;
• Any particular groups identified in the Equalities Impact Assessment will be
targeted in ways suitable to reach them; and
• Investors.
Strategy
• Develop a high web presence for the scheme using the KCC website, social media,
KCC Media Hub, links from other stakeholders’ websites (Network Rail,
Southeastern, Thanet District Council etc.);
• Press releases leading up to the work and with progress updates. Use a proactive
press strategy as well as dealing with reactive press enquiries;
• Use an offline marketing strategy targeting residents, businesses and train users
within the areas set out above, such as letters/postcards/leaflets;
• Work with stakeholders to ensure messages are communicated as widely as
possible; and
• Potentially hold resident engagement events to keep people informed prior to
construction and during. Have a dedicated contact email address or named person
for residents directly affected by construction, e.g. noise.
Key Messages
7.8.14 The campaign will require two phases of communication.
1. Phase 1: pre-construction. Letting people know that the works will be taking place
and will cause disruption.
2. Phase 2: construction. Keeping people informed about the progress of the works
and long-term benefits once completed.
7.8.15 It is possible that after construction a third phase of communication may be desirable to
make potential new train users aware of the benefits of Thanet Parkway.
7.8.16 The key messages could include:
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• This scheme will:
o Improve journey times between Thanet and London;
o Support housing and job growth in the local area; and
o Improve access to the rail network for residents in Thanet.
• There will be disruption during construction – to keep the construction period to a
minimum, work will take place during the night where appropriate; and
• Know your travel options (help people consider how they will use Thanet Parkway
when finished).
Exhibition Events
7.8.17 Public and stakeholder engagement events will be considered as the construction
planning progresses. These formed part of both the consultation in 2015 and 2017 so a
similar arrangement could be easily utilised if required. These events were previously
held at Cliffsend, Ramsgate Station, Minister, Acol and Discovery Park.
Press
7.8.18 A press strategy will be planned when the final timelines are in place for the project.
This will include:
• Releases to all local media (press, radio, TV). To include Thanet Gazette, Minster
Matters, parish council newsletters and other local press as appropriate;
• Social media channels kept up to date with latest news (KCC’s, Thanet District
Council’s, Minster’s, etc.);
• Add all press releases to KCC media hub;
• Invite the press for a launch of the works at the start of the project;
• Deal with reactive enquiries; and
• Carry out radio interviews.
Advertising and promotion
• Billboards/posters at train stations in run-up to construction;
• Site banners on the entrance road;
• Kent Messenger group of papers will likely pick up the press releases but adverts
may be appropriate;
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• Billboards/posters on trains on the route;
• Links to press articles and the KCC website page on social media;
• Email to people who signed up to the KCC consultee database requesting
information about the project’s consultation;
• Posters displayed in suitable locations as appropriate, such as Parish or Town
Councils, Discovery Park, local libraries;
• Briefing to local KCC and TDC Members;
• Links on partner websites – Southeastern and Network Rail; and
• Social media:
o Potentially investing in a Twitter or Facebook channel, which has worked well
for other major schemes.
o Social media advertising targeted at train users in the area.
Risks
• Residents nearby are frustrated at the works;
• Stakeholders feel that they have not had access to sufficient information;
• Stakeholders feel that the information about the scheme lacks clarity;
• Plans are criticised by local influencers/stakeholder groups in advance of the
scheme;
• Scheme overruns, causing criticism; and
• Factors outside of KCC’s control causes disruption.
7.8.19 All of these risks will be assessed and suitable mitigation determined for the
communications campaign.
7.9 Risk Management
7.9.1 Project risk is run in accordance with the requirements of the KCC Risk Management
Policy and Strategy 2016 - 2019. This policy specifies that project opportunities and
threats should be 'owned' by the appropriate stakeholder, thus ensuring effective
management of risk.
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7.9.2 Although the output of the risk analysis is very useful, the analysis process itself also
develops ways to avoid risk, to create risk mitigation plans, and to capitalise on
opportunities. The process of identifying threats and opportunities and assessing them
is outlined in the following steps:
• A risks and opportunity assessment template circulated to all key stakeholders by
the Project Manager;
• Stakeholders identify relevant risks and return the initial risks and opportunities
assessment to the Project Manager; and
• A risks and opportunity workshop involving all stakeholders undertaken to review
the identified risks and opportunities and to finalise the assessment.
7.9.3 The risks and opportunities assessment document will be live throughout the life of the
project and will be reviewed and updated, if required, on a regular basis. These reviews
will focus on:
• Defining and implementing a risk mitigation strategy
• Minimising risk exposure during delivery
• Assessing, monitoring and closing risks
• Improving the accuracy of costs and forecasts by exploring uncertainties.
7.9.4 The KCC Project Manager will be accountable for risk management and will allocate the
responsibility to the relevant stakeholder.
7.10 Scheme Risks
7.10.1 Table 7.4 indicates the risks associated with the Thanet Parkway Station scheme from a
project delivery and project funding perspective, including the main development,
construction and operational risks.
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Table 7.4: Scheme Risks
Risk Mitigation
Development Failure to obtain
external funding
Several funding opportunities are currently being investigated, to
decrease the risk of failing to secure funding, alongside an
increased LGF ask.
Scope creep/changes
to project scope
Continuous dialogue between stakeholders, politicians and
consultants to reduce the level of scope creep by ensuring that
station design fits with expectations.
Project scope clearly defined at the beginning of the project and
through consultation with organisations such as Network Rail and
Southeastern. This should help to ensure that changes are not
required to the design of the station at a later stage in order to
meet Network Rail or Southeastern requirements.
Compulsory Purchase
Order Powers
Legal advice being sought from KCC Legal and Counsel.
Negotiations with land owner continue to ensure CPO is a last
resort.
Failure to obtain
planning approval
Thanet Parkway is supported strategically by KCC and Thanet DC
planning policy. The planning consultant has engaged the
relevant planning authority at an early stage to ensure all aspects
are considered within the planning application
Construction Over-run of disruptive
possessions
Contractor and Network Rail work closely to ensure that
possession over-run does not occur. Contractor and Network Rail
incentivised through contractual mechanisms not to over-run
possessions.
Delays during
construction works
Regular liaison between the contractor (managed by Network
Rail), KCC, Southeastern and other parties. Penalties may be
included within the contract to incentivise the delivery of the
project on time.
Upgrades required to
level crossing
Contingency allowed for in scheme cost estimate to cover
additional costs relating to requirement for manually controlled full
barrier type crossing.
Operational Passenger forecasts
do not materialise
Independent validation of passenger and revenue forecast.
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Risk Mitigation
Demand forecasts predicted in the
Business Case do not
materialise
Independent validation of the demand forecast undertaken by KCC
and by DfT/NR.
Demand for the
station does not
generate sufficient revenue to pay for its
maintenance
The business case demonstrates that the proposed train service
covers its net operating cost from newly generated revenue.
Demand for the car park does not
generate sufficient
revenue to pay for its
maintenance
The business case demonstrates that the proposed car park covers
its net operating cost from newly generated revenue.
Trains do not stop at
the station
The new South Eastern Franchise Specification requires the new
franchisee to serve Thanet Parkway, as well as to not impede the delivery of the new station. They are also required to enter into a
Station Lease, and therefore take responsibility for the operation
and maintenance of the station.
Risk Transfer
7.10.2 Although many of the design risks can only be resolved through rigorous design and
review processes, once the design options are clear and the scope of land acquisition,
planning requirements, environmental requirements are fully identified; the primary risks
will be related to construction.
7.10.3 There is potential for transferring these risks through the construction procurement
process. This will be explored fully as the design and procurement process progresses
and KCC will be looking to allocate the risk to the best party able to mitigate or remove
it. The form of the contract will help in the allocation and the choice of a relevant
payment mechanism will facilitate this.
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7.11 Monitoring and Evaluation
7.11.1 Monitoring is a key part of the project from inception to delivery and beyond to full
benefits realisation. KCC reports back to SELEP on the status of each project in its LGF
programme through the Local Growth Fund Programme Manager. The Thanet Parkway
Project Manager inputs to this process through monthly Programme Board meetings held
internally to KCC. Additionally, more intensive monitoring will be undertaken from project
delivery onwards to ensure that the scheme’s objectives are achieved.
7.11.2 Scheme monitoring will take place prior to scheme opening (baseline) and at predefined
intervals upon successful delivery of the scheme, notably:
• 1 year post scheme opening;
• 5 years post scheme opening; and
• At later project years based on passenger, job and housing forecasts.
7.11.3 KCC will conduct a full evaluation of the impact of the scheme in the period after it is
completed. The Council will prepare evaluation reports one yea and five years after
scheme opening, using the information to be collected as part of the Benefits Realisation
Plan to gauge the impact of the scheme on the traffic network, and assess the success
in meeting the scheme objectives. Unexpected effects of the scheme will be reported
upon and, where appropriate, remedial measures identified.
7.11.4 KCC will report back to SELEP highlighting the monitoring of the scheme objectives
particularly relevant to their Growth Deal outcomes, namely housing unit completion,
jobs created/safeguarded. These are scheme objectives 1, 2 and 3 (Table 7-5). This
evaluation will be carried out taking account of other schemes in Thanet that could have
had similar effects, for example other transport infrastructure improvements as a result
of the Thanet Local Plan.
7.12 Benefits Realisation Plan
7.12.1 The purpose of benefits realisation is to plan for and track the benefits that are expected
to be accrued over the lifetime of the scheme. The plan will detail the activities required
to track the progress of the scheme including project milestones and responsibilities.
7.12.2 Scheme benefits can be realised immediately but others do take time and there are wider
benefits to be considered.
7.12.3 The remainder of this section will:
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• Summarise the key scheme objectives;
• Outline how the objectives will be measured; and
7.12.4 In order to ensure that the objectives are being realised, a method for measuring outputs
from the scheme is classified in Table 7.5.
Table 7.5: Outcome Measurement
Objective Measurable Outcomes
1. Accelerate the pace of housing delivery in Thanet.
1,600 – 3,200 additional homes delivered between opening year and year 30.
2. Positively contribute to economic growth by attracting higher skilled workers to the area.
Measured by data from 2011, 2021 and 2031 census showing change in educational attainment of the population.
3. Stimulate the creation of additional jobs by encouraging business location and expansion decisions based on the existence of the new station and journey times to London of around 1 hour.
Measured by data from the Kent Invicta Chamber of Commerce, Locate in Kent and the district Local Planning authorities. 400 - 800 additional jobs from opening year to year 30. Reduced unemployment figures.
4. Generate over 50,000 new rail journeys from first full operational year (2022).
Measured by new ticket sales from the new station compared with ticket sales from the existing stations in the area.
5. Increase week day usage of the new station year on year from 412 in 2022, to 456 in 2026.
Measured by rail ticket receipts.
6. Provide rail access from Thanet to London with a journey time of around one hour.
Measured by checking new timetable (with Parkway station) compared with existing timetable (without parkway station) against published performance figures.
7. Provide commuters with alternative access to the area for journeys that might otherwise be made on the local and strategic highway network from opening year and increasing by 2031.
Measured by the utilisation of the 300 parking spaces, including 8 electric vehicle parking spaces and 40 cycle parking spaces, achieving 54% capacity use in 2021 increasing to 75% in 2031 which will be measured by car park ticket numbers.
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - 103 - Issued: March 2019
7.12.5 The Project Board will actively manage the project to ensure that the objectives set out
in Table 7-5 are achieved, and that the high Value for Money demonstrated in the
business case is provided. Housing and job delivery will be monitored locally following
project delivery. The increase in skills of the catchment population will be assessed
through census returns, as well as through the regular annual monitoring of employment
statistics that KCC already undertakes to assess economic growth in the district.
Likewise, passenger usage of the station will be monitored annually, and the car parking
usage will be consistently reviewed based on ticket sales. Other methods, such as
passenger interviews, would be determined when baseline monitoring is commissioned
and planned for the 1st and 5th anniversary reviews.
7.12.6 The timetable for Thanet Parkway will be assessed to ensure that journey times are as
forecast. Further, KCC is a key stakeholder in the new South Eastern Rail Franchise (that
will be underway when Thanet Parkway opens) so can directly influence its specification
as a KCC officer is embedded in the franchising team at the Department for Transport
(DfT). In this regard, KCC has requested that the new franchise has a requirement for
all trains which pass the new station to stop there (mainline and high speed) in
accordance with Network Rail’s own timetable analysis that demonstrates no additional
costs of doing so in terms of rolling-stock or crews. Through KCC’s already good working
relationship with the DfT, Network Rail and existing franchisee, the service at Thanet
Parkway will be closely monitored to ensure it delivers the expected benefits.
7.12.7 The Local Planning Authority, Thanet District Council, supports the proposals and
consequently has allocated Thanet Parkway in their draft Local Plan. To maximise the
opportunities created by the station for housing and economic development, the local
planning framework will need to reflect the opportunities created. Public and private
organisations will also need to proactively market the area to attract inward investment,
which will in turn improve market conditions for regeneration. KCC and Thanet District
Council will work together with key stakeholders, such as Locate in Kent and the
Chamber of Commerce as well as local business parks, to promote the area and ensure
that the new opportunities are taken up to meet the objectives set out above and fully
realise the business and economic growth benefits.
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - 104 - Issued: March 2019
7.12.8 To monitor the project after delivery and ensure that the full benefits are realised, the
External and Internal Project Boards will continue to meet after construction and the
opening of the station. Responsibility for monitoring will remain with the Senior
Responsible Owner (Director – Environment, Planning and Enforcement) delegated to
the Project Executive (Head of Strategic Planning and Policy). The External Project Board
will be responsible for providing data for monitoring, for example the district councils for
housing delivery and the Franchise Operator for station usage data. The Project
Executive will report back to SELEP on benefits realisation at 1 and 5 years after opening
in line with required monitoring.
7.12.9 £10,000 has been allocated from the Transport Strategy revenue budget for baseline
data collection and reporting in 2019/20, and then for monitoring and evaluation each
at 1 and 5 years after opening.
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - A - Issued: March 2019
Appendix A Scheme Proposal Plans
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - B - Issued: March 2019
Appendix B Thanet Parkway Station Full
Business Case Economics TN01,
PBA 2018
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - C - Issued: March 2019
Appendix C Economic Appraisal Calculation Spreadsheet
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - D - Issued: March 2019
Appendix D Letters of Support
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - E - Issued: March 2019
Appendix E (E1) Thanet Parkway Options
Analysis and (E2) Thanet
Parkway Sites Appraisal
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - F - Issued: March 2019
Appendix F Scheme Cost Estimate
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - G - Issued: March 2019
Appendix G Quantified Risk Assessment
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - H - Issued: March 2019
Appendix H Project Programme
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - I - Issued: March 2019
Appendix I Project Governance Plan
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - J - Issued: March 2019
Appendix J Stakeholder Management Plan
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - K - Issued: March 2019
Appendix K Thanet District Transport
Strategy Infrastructure Plan
(draft with indicative
development site boundaries)
Project NameThanet Parkway Station
Document TitleLGF Transport Business Case Report
Doc. Ref.:CO04300561/001 Rev. 04 - L - Issued: March 2019
Appendix L Passenger Demand Modelling
Report